South Africa’s Gas Industry Seeks State Support

The Industrial Gas Users Association of South Africa (IGUA-SA) is urging the South African government to take a central role in gas infrastructure planning and financing. The industry group released an updated Gas Roadmap for 2025–42, suggesting a coordinated national framework. This framework would involve the presidency, National Treasury, Eskom, Sasol, and private gas aggregators.

IGUA-SA’s roadmap responds to concerns about a potential gas supply shortfall after 2028, as Mozambique’s Pande-Temane fields decline. The association proposes a National Gas Task Team led by the presidency to coordinate efforts across key departments and entities. They also suggest aggregating demand from major users like Eskom and Sasol to create a more secure investment case for large-scale LNG infrastructure.

The Integrated Resource Plan 2025 anticipates gas providing roughly 11% of South Africa’s electricity by 2039. However, the IGUA-SA notes that current infrastructure development and procurement processes may not meet these goals. While proponents believe government involvement is necessary to unlock investment, critics worry about increased fiscal risk and reduced competition.