With a decline in domestic gas supply from Mozambique, which poses a threat to the South African market, the National Energy Regulator of South Africa (NERSA) said it has its work cut out.
The energy regulator has devised a strategy report outlining its vision of the role of gas in South Africa’s evolving energy landscape, as well as recommendations of a range of viable gas supply options to address the immediate needs for gas.
Nomfundo Maseti, Regulator Member Responsible for Piped-Gas Regulation, said as the country navigates the ongoing energy transition, characterised by the rapid growth of renewable energy and hydrogen development, the strategy provides a roadmap for integrating gas into South Africa’s energy economy while ensuring environmental and social responsibility.
The strategy outlines its key objectives as diversifying and securing gas sources and infrastructure to ensure environmental and social responsibility in gas development.
Enhancing the competitiveness of gas as an energy source, improving sector regulation and strategic alignment in gas sector planning and development, supporting renewable energy integration and facilitating the transition to a low-carbon economy.
The strategy also suggests more investment in gas infrastructure, particularly liquefied natural gas (LNG) import facilities and diversified gas supplies from domestic, regional and international sources; highlights prioritising LNG as the most feasible option to fill the gas supply gap in the short to medium term, while it also advocates for decisive policy actions to develop indigenous gas resources for long-term energy security.
The strategy also advocates for strengthening bilateral and regional cooperation with Mozambique and exploring partnerships with other countries such as Tanzania, Namibia and Angola.
Maseti also said “the recommended key policy and strategic interventions would directly shape the timing and the country’s ability to address the growing challenges for gas, particularly the issue of security of supply. It is also important that the right decisions are made at the right time to ensure that gas remains part of the future energy system, alongside renewable energy and hydrogen, for the benefit of the country.”