Navigating The Road Ahead
FUTURE-PROOFING SOUTH AFRICA’S GAS SUPPLY:
As South Africa continues its journey toward a more sustainable and secure energy future, significant shifts in the gas supply landscape are unfolding. Egoli Gas would like to keep our stakeholders informed about key developments affecting long-term natural gas availability and the steps being taken to ensure continuity of service for our customers.
Sasol Gas, our primary supplier, has been working towards the introduction of Liquefied Natural Gas (LNG) as a long-term, sustainable energy source for South Africa. However, recent updates highlight growing uncertainty around the readiness of the required LNG infrastructure by the anticipated date of June 2028.
This concern is compounded by the continued decline in natural gas production from Mozambique. As a result, Sasol Gas has confirmed that unless viable alternatives are established, it will be unable to supply natural gas beyond July 2028.
Bridging the Gap: Interim Supply via Methane Rich Gas (MRG)
To mitigate this looming supply gap, Sasol Gas is exploring the use of Methane Rich Gas (MRG), also known as Synthetic Gas, as a transitional solution. This gas, produced at Sasol’s Secunda Operations, is being positioned to cover the critical period between July 2028 and mid-2030, when LNG supply is expected to be fully operational.
While promising, this interim solution hinges on several important factors:
Technical modifications at Sasol’s facilities to enable sustained MRG production.
Regulatory approvals from the National Energy Regulator of South Africa (NERSA).
Pricing considerations, as MRG is expected to be substantially more expensive than current natural gas due to its production complexity and associated costs.
What This Means for Our Customers
At Egoli Gas, we understand the importance of stability and predictability in energy supply, particularly in the face of industry-wide changes. That’s why we are committed to:
Providing transparent and timely updates on developments as they unfold;
Engaging with our customers directly to assess the technical and financial impacts of the proposed changes;
Collaborating on infrastructure readiness, volume planning, and contractual considerations to ensure a smooth transition.
We thank you for your continued trust and partnership as we shape the future of gas supply together.