South Africa is at a crucial juncture in shaping its long-term energy future, requiring a collaborative push from both industry and government to ensure energy security while driving economic growth. Despite the formation of a new ruling coalition after the May 2024 general elections, the key challenges in the energy sector remain unchanged, with several unresolved issues still on the table.

Natural gas has become a vital element in South Africa’s shift away from coal, a view shared by many stakeholders. However, the country’s ability to leverage gas resources is being slowed down by several obstacles, including delays in tapping into domestic reserves, a lack of adequate gas infrastructure, and the impending expiration of long-term contracts for imported pipeline gas. The integration of natural gas into the energy market will largely hinge on finding the most cost-effective import strategies, as domestic production alone is not sufficient to meet the growing demand.

A proposed electricity rate increase in South Africa could see Eskom request a hike of 36.15% to 44% from the National Energy Regulator of South Africa (Nersa) for 2025. This adjustment could lead to an additional R2,500 per month, depending on consumption levels.

For an average household using 900 kWh, the monthly bill could rise by up to R1,600.

According to a recent Daily Maverick report, Eskom has put forward a significant proposal for raising electricity tariffs.

After 75 years in operation, Provo Power, a member of the Utah Municipal Power Agency (UPMA), sought to modernize its aging equipment with more Eco-friendly power generation solutions. Local Cat dealer Wheeler Power Systems installed five clean-burning Cat G352OH natural gas generator sets, resulting in a 97 percent reduction in plant emissions.

The African Energy Chamber spoke with Gabriel Lorenzi from Galileo Technologies about the strategic role LNG and CNG plays in Africa.

Natural gas is expected to account for 30% of Africa’s energy mix by 2050, with the development of LNG and CNG infrastructure driving gas adoption continent-wide. Ahead of the African Energy Week (AEW): Invest in African Energy conference, the African Energy Chamber spoke with Gabriel Lorenzi, Commercial Vice President: Africa, Middle East & Asia Pacific at Galileo Technologies about LNG and CNG in Africa and the strategic role of virtual pipelines.

Galileo Technologies – Good energy, for a better world

Galileo Technologies is a leading firm specializing in the engineering and manufacturing of advanced energy solutions. For over 30 years, the company has focused on enhancing access to energy sources while minimizing carbon footprints. Known for its modular and scalable technologies, Galileo offers solutions for the production, distribution, and consumption of Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), Renewable Natural Gas (RNG), and Hydrogen (H2). With corporate offices in Buenos Aires, Argentina, and New Jersey, USA, and service and training centers in Texas, USA, Galileo Technologies delivers continuous support across 70 countries.

OUTSTANDING RESULTS FROM INITIAL PRODUCTION TESTING AT RBD03

Highlights

Three Australian oil and gas juniors have made big moves today that could completely change southern Africa’s energy future.

Operating in Zimbabwe and South Africa, the companies are targeting major gas developments in a region currently struggling to find new energy sources.

Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) is set to take a “transformative step forward” in its strategy to develop an energy solution for South Africa by commercialising advanced shallow conventional gas projects in Mpumalanga Province with preparations underway for five production test wells.

Site preparations have started for the first of these wells, with drilling equipment and consumables arriving on site. Conductor casing and water monitor well drilling will take place initially and this work is expected to be completed within four weeks.

South Africa’s ongoing power shortages highlight the urgent need to tap into its natural gas resources. This cleaner-burning fuel can bridge the energy gap while facilitating a transition to renewables and a lower-carbon future.

A recent policy brief, “Natural Gas as a Transition Fuel in South Africa,” produced by Eye for Business, minced no words concerning the need to access and use that plentiful underground resource.

Oil super major Shell won a reprieve for Wild Coast offshore exploration after a South African appeals court suspended an earlier ruling from a lower court that had halted exploration activities due to environmental concerns, Reuters reports.

Shell targeted South Africa’s Wild Coast for oil exploration in 2014, sparking backlash from indigenous peoples in this eastern region of the country who were concerned about the potential for land and water contamination.

KINETIKO Energy expects to start microscale liquefied natural gas (LNG) production at its Amersfoort Development as early as the end of next year.

The Australian based energy group’s Amersfoort Development, which stretches across Mpumalanga and KwaZulu-Natal says though its production will be small scale, it will still be on a commercial basis.