Page 4 - AfrOil Week 07 2023

AfrOil COMMENTARY AfrOil

Energy shortages led President Ramaphosa to declare a national “state of disaster” on February 9 (Photo: presidency.gov.za)

AEC urges South Africa

to step on the gas

Industry association says gas projects, the private sector and free-market

investments are crucial tools to address South Africa’s electricity crisis

SOUTH African President Cyril Ramaphosa South African government accelerate the coun-
declared a National State of Disaster over the try’s gas agenda, both as a short- and long-term
WHAT: Southern African country’s electricity crisis strategy to alleviate the looming electricity crisis.
The AEC views investment during the State of the Nation Address held in
in gas projects and Cape Town on February 9. Push for gas development
free-market policies Measures set to be introduced to reform the South Africa’s gas reserves are immense and
as the best remedy for electricity crisis during the National State of Dis- remain untapped, with massive discoveries
South Africa’s energy aster will include the introduction of a new Min- including the French major TotalEnergies’ Brul-
emergency.
istry of Electricity in the Presidency to oversee padda and Luiperd prospects containing com-
WHY: the revitalisation of Eskom’s operations and the bined reserves of 3.4 trillion cubic feet (96.28bn
Efforts to explore and country’s generation capacity. cubic metres) of natural gas and 192mn barrels
promote the development The African Energy Chamber (AEC), as the of gas condensate. With TotalEnergies having
of offshore and onshore voice of the African energy sector, supports the applied for a production license to develop these
hydrocarbon basins have president’s commitment to address the country’s gas fields offshore South Africa, the Chamber is
been stymied by environ- electricity crisis. But massive reforms from an calling for the government to fast-track permit
mental activists. investment and policy perspective need to be approval and kickstart the country’s journey
implemented to restore confidence among local, towards energy resilience and security.
WHAT NEXT: regional and global businesses for them to invest Massive projects such as Gigajoule’s $550mn
The government will have in the country’s energy sector. Matola LNG in Mozambique, which will sup-
to do more to convince With consumers in Africa’s third-larg- ply South Africa with gas, as well as the 865-km
investors to commit to the est, most industrialised and technologically ROMPCO gas pipeline from Mozambique to
country’s energy sector. advanced economy witnessing more than eight South Africa and Renergen’s Virginia LNG pro-
hours of blackouts per day, the AEC strongly ject in South Africa’s Free state, are crucial and
recommends that President Ramaphosa and the need to be fast-tracked.

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