We are facing a new blow to energy availability in our economy, with a cliff in natural gas supply just over two years away.
new blow to energy availability in our economy, with a cliff in natural gas supply just over two years away. Many industries rely on gas as an energy source, from glass making to beverages. The current main source of supply, two gas fields in Mozambique operated by Sasol, will not supply South African clients from mid-2026 since Sasol will fully utilise the remaining gas itself.
As with electricity, there have been warnings for some time that this was coming. But through a combination of policy inaction and an inability to commit to the large-scale investment needed to create alternative infrastructure, we now face an almost inevitable supply interruption. That puts 70 000 jobs at risk that are employed in businesses that rely on gas as a key input, generating R500-billion/year for the economy.
There are possible solutions, but they will require swift action from government and business working in partnership. It takes massive investment to develop new sources of gas and infrastructure to get it to where it is needed, and as it stands the best options still envisage a 12- to 18-month gap between the end of Sasol’s supply and any new supply coming on stream.
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