Leading Transformation in the Gas Sector.
ERIKA DA CRUZ | GENERAL MANAGER
Egoli Gas's first female General Manager, Erika da Cruz, reflects on her journey and how she is steering a structured transition from natural gas to methane rich gas (MRG), aligning the company with South Africa's future energy realities.
Egoli Gas plans to transition to methane-rich gas (MRG) in mid-2028. How is planning progressing regarding this?
Planning for the transition is progressing in a structured and collaborative manner. Egoli Gas has been engaging closely with suppliers, regulators, customers, industry stakeholders and Original Equipment Manufacturer (OEM) partners to ensure that the move to methane-rich gas (MRG) can be implemented with minimal disruption to customers and the broader gas network.
Importantly, the transition is not being approached as a short-term intervention, but as part of a broader strategy to support South Africa's evolving gas economy beyond 2028.
With the country's energy sector still under pressure, what are key challenges and opportunities in shifting to MRG?
Methane-rich gas is not a new energy source in South Africa. It has been available and successfully utilised for more than 20 years, particularly in KwaZulu-Natal and Mpumalanga.
One of the key challenges in transitioning to MRG is managing the process in a manner that maintains confidence across the industry and among consumers. South Africa's piped gas sector has historically relied heavily on pipeline gas imports from Mozambique, and the anticipated decline in supply beyond 2028 necessitates coordinated action across the entire value chain. This includes securing the necessary regulatory approvals, ensuring cost competitiveness, and preparing customers technically for the transition.
At the same time, the shift to MRG presents significant opportunities. MRG offers South Africa a practical bridging solution that enables the industry to continue operating while strengthening energy resilience, supporting industrial growth and job retention, and contributing to the development of a more diversified gas market.
Gas will continue to play an important role in South Africa's broader energy transition, particularly as the country seeks to balance energy security, affordability and economic growth.
From a stakeholder perspective, are there any key misconceptions about this transition?
One of the most significant misconceptions is that the transition to methane-rich gas will result in abrupt disruptions or leave customers without piped gas supply. In reality, the transition is being carefully planned well in advance to ensure it is seamless, with customers expected to experience little to no disruption during the process.
Another common misconception is that MRG is fundamentally different from the piped gas currently being utilised. While there are minor compositional differences, MRG has been developed to provide continuity within the existing gas market, requiring only manageable technical adaptations where necessary.
There is also a perception in some quarters that the gas sector faces an inevitable collapse after 2028. Egoli Gas believes this view overlooks the considerable work already underway to implement bridging solutions, such as the future role of LNG imports, which are expected to come into effect from 2030-31.
To address these misconceptions, Egoli Gas continues to engage transparently with customers, regulators and industry stakeholders, including NERSA and SAGA, through ongoing communication, stakeholder engagement and collaborative transition planning initiatives. The transition of South Africa's gas sector cannot be addressed by a single organisation alone. Industry alignment and coordinated stakeholder engagement is essential to ensure that the country's piped gas market remains sustainable, competitive and resilient in the years ahead.
According to Egoli Gas, the much discussed "gas cliff" is a misconception. Can you elaborate on this a bit?
The term "gas cliff" suggests a sudden and irreversible end to South Africa's gas market in 2028. That framing is not entirely accurate. What the industry is facing is a "bridge", a transition point, not a collapse.
The development of methane-rich gas, combined with emerging LNG opportunities and future regional gas developments, creates a bridging pathway between current supply arrangements and a more diversified future gas market.
In other words, the industry is not approaching the edge of a cliff; it is building a bridge toward the next phase of South Africa's gas economy.
How does your HR and transformation background contribute in ensuring workforce readiness and inclusiveness for this transition?
It's all about people. My HR and transformation background has highlighted time and time again that irrespective of how well thought out your strategy might be the people responsible for the implementation of such strategies must be taken along the journey from the onset.
A large focus of Egoli Gas is ensuring that all employees are well trained and knowledgeable for the upcoming transition to MRG. It's a collaboration of experience and know-how across all levels within the organisation that ensures Egoli Gas maintains and delivers the expected service to all our customers.
The energy sector continues to evolve. With gas Independent Power Producers entering the wholesale electricity market, do you foresee this impacting Egoli Gas's operations?
The emergence of gas Independent Power Producers (IPPs) is expected to play an increasingly important role in shaping future piped gas demand in South Africa. Greater participation in gas-to-power projects has the potential to support the development of larger, more diversified piped gas infrastructure, ultimately benefiting the broader energy market.
For Egoli Gas, this evolving landscape presents both strategic opportunities and important considerations. As South Africa's piped gas economy continues to develop, opportunities arise to expand participation across adjacent segments of the value chain, including gas-to-power initiatives and diesel-to-gas conversion projects.
“As South Africa's piped gas economy continues to develop, opportunities arise to expand participation across adjacent segments of the value chain, including gas-to-power initiatives and diesel-to-gas conversion projects.”
