Source: Government of South Africa
Natural gas development critical for African transition
Mineral and Petroleum Resources Minister Gwede Mantashe has made a robust defence for natural gas development, framing it as essential to industrialisation and a “just and realistic energy transition” for the continent.
The Minister was speaking at the 11th edition of the Africa Gas Forum held on the sidelines of the Africa Energy Indaba in Cape Town.
According to the International Energy Agency, some 600 million Africans lack access to electricity, a reality Mantashe described as both a social and industrial crisis.
“Without reliable energy, there can be no manufacturing base, no beneficiation, and no meaningful job creation.
“Addressing this conundrum requires the African continent to redefine its narrative from one of energy deficit to one of proactive industrial enablement. Natural gas must play a central role in that repositioning.
“Africa accounts for 7% of known global gas reserves and contributes less than 4% of global greenhouse gas emissions. In that context, the strategic utilisation of our domestic gas resources is not speculative; it is foundational to a just and realistic energy transition that recognises our socio-economic realities,” Mantashe said.
He noted that expert analysis has identified gas as the “most effective transition fuel for the continent”.
“It offers reliable, high-density baseload power and materially lower emissions. It is the bridge that allows us to industrialise while reducing carbon intensity.
“This year’s Africa Gas Forum presents a vital platform for African nations to examine our gas potential and determine how it can be catalysed to power industrial growth and economic transformation across the continent,” the Minister said.
Domestic prospects
Mantashe noted that South Africa stands at a “critical energy juncture”, with Mozambique’s Pande and Temane fields now facing decline.
The fields have provided for some 90% of South Africa’s needs over at least 20 years.
“This is not merely an industry concern; it is a national economic risk. We cannot allow what happened in the electricity sector to be replicated in the gas sector. Accordingly, we are moving with urgency to ensure security of supply.
“To avert an industrial cliff-edge, we are implementing a two-pronged strategy: immediate imports and accelerated domestic development,” the Minister revealed.
He acknowledged Sasol’s proposed Methane-Rich Gas (MRG) as a bridging solution for the period 2028 to 2030, which will provide “critical breathing space as we finalise our LNG [Liquefied Natural Gas] import infrastructure”.
“Our strategic LNG hubs are progressing toward implementation. However, the sustainable long-term solution is domestic production. Despite resistance from environmental lobby groups, offshore exploration activity remains resilient, led by specialised independent operators.
“Along our west coast, the Orange Basin has emerged as a world-class frontier following significant discoveries in Namibia. Operators, including TotalEnergies and Shell, are advancing exploration programmes that could substantially expand our resource base and enhance our long-term Gross Domestic Product prospects.
“In the Outeniqua Basin, Africa Energy Corp is accelerating development of the Brulpadda and Luiperd discoveries,” Mantashe said.
On South African shores, developments are also underway.
“[The] Virginia Gas Project in the Free State has reported 60% increase in gas throughput since 2025 and maintains an 80% drilling success rate.
“The Thungela resources’ Lephalale coalbed methane project and Kinetiko’s gas project in Mpumalanga are progressing toward production following successful drilling campaigns. Thungela has submitted their application for a production right, while Kinetiko is also preparing to submit their production right application.
“On shale gas, we have concluded a seismic survey in the Central Karoo last month, thus improving our geological understanding of the basin. Once the requisite regulations are promulgated, we stand ready to lift the moratorium to unlock the full potential of our basins,” Mantashe said.
Providing policy certainty
Underpinning these developments are reforms to the legislative architecture such as the Upstream Petroleum Resources Development Act (UPRDA).
“The [UPRDA] represents a strategic separation of petroleum from mining legislation. By consolidating exploration and production into a single petroleum right, administrative transition periods are shortened significantly.
“The Act further provides for 20% carried interest for the State, ensuring direct national participation in the returns from our natural endowment.
“In addition, the South African National Petroleum Company (SANPC) Bill seeks to establish a unified state-owned champion to manage our strategic interests across the petroleum value chain,” the Minister said.
Citing the regulatory reforms, the Mantashe pronounced that the “era of policy uncertainty is drawing to a close”.
“To investors and partners in this hall, the regulatory framework is stabilising, infrastructure roll-out is underway, and demand fundamentals are policy anchored.
“The next frontier lies in strengthening midstream connectivity and downstream market certainty to convert gas molecules into industrial output, employment and economic resilience.
“Let us build a foundation for prosperity rooted in our own resources. Let us pursue energy security with pragmatism. And let us drill responsibly and strategically for the benefit of South Africa and the African continent,” Mantashe said. – SAnews.gov.za
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