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.
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