South Africa unveiled its Gas Master Plan (GMP) in April 2024, a policy tool designed to ensure a reliable gas supply by diversifying options from local and international markets. The plan outlines projected demand, infrastructure needs, and targeted capacity. The GMP aligns with initiatives such as the Gas Integrated Power Producer Procurement Program, aiming to add 2 GW of new generation capacity through land-based gas-fired power facilities. South Africa’s emerging hydrocarbon market presents numerous opportunities for companies involved in exploration, production, and infrastructure development.
In efforts to attract investment in the South African oil and gas sector, Minister of Minerals and Petroleum Gwede Mantashe will participate in the African Energy Week (AEW): Invest in African Energy conference from November 4-8 in Cape Town. This participation reflects the country’s commitment to oil and gas development as part of the broader strategy to enhance energy security and industrialization nationwide.
AEW: Invest in African Energy has become the premier platform for project operators, financiers, technology providers, and government officials, serving as the official event for signing energy deals in Africa. For more information on this event, visit http://www.AECWeek.com.
In response to the urgent need for new energy sources in South Africa, the government is promoting investment in frontier exploration. The Orange Basin in South Africa, which benefits from proven potential in neighboring Namibia, has attracted significant interest. Notable discoveries were made in Namibia between 2022 and 2024, prompting energy companies to engage in South African offshore blocks with hopes of similar success.
This year, energy giants TotalEnergies and QatarEnergy acquired interests in Block 3B/4B. These transactions mark the beginning of potential partnerships, with more developments anticipated in South Africa’s offshore basins, offering unexplored opportunities.
Onshore, South Africa is tapping into its gas resources for power generation and fuel. The Karoo Basin holds significant gas reserves, making it an attractive onshore prospect. Various projects are underway, including exploration rights for helium and natural gas setup by Panoro Energy. Additionally, Kinetiko Energy is progressing with gas flow testing programs in Mpumalanga province.
Aside from exploration, South Africa is seeking investment partners for energy-related infrastructure projects, including hydrogen, power generation, refining, and distribution. Gas-to-power is a key industry focus, as outlined in the Integrated Resource Plan 2023. The plan emphasizes the need for new gas-to-power capacity to support industrial and electrification efforts in the country.
Executive Chairman of the African Energy Chamber, NJ Ayuk, highlighted the importance of natural gas in addressing South Africa’s energy crisis. He emphasized the need for increased investment in the sector to maximize the country’s oil and gas reserves.
Minister Mantashe’s participation in the AEW: Invest in African Energy conference demonstrates the ministry’s dedication to maximizing oil and gas development in South Africa. The conference serves as a platform for engaging with investors, technology providers, and regional counterparts to discuss investment opportunities, regulatory support, and national energy priorities.
Content distributed by APO Group on behalf of the African Energy Chamber.