BusinessDay: South Africa looks to Mozambique, others for gas

Battling with energy shortages, South Africa is looking to gas-rich Mozambique and its shale gas resources as it plans to allow higher level of gas  into its coal-heavy energy mix.

The country, which is facing an imminent energy crisis as demand outstrips supply, source about 77 percent of its current electricity from coal, while natural gas accounts for just 3 percent of the country’s energy mix.

The country requires increased generating capacity not only to meet current demand, but also to meet future economic growth as well as replace old power stations whose coal reserves will soon be exhausted. 

Tina Joemat-Pettersson, South Africa’s energy minister, in her energy budget speech last week, said natural gas, including shale gas, and nuclear should play a greater role in the country’s energy mix.

The newly appointed minister said she planned to finalise the frameworks to allow higher levels of gas and nuclear in South Africa’s coal-heavy energy mix.

“With regard to the development of our gas resources, including the regional gas opportunities in neighbouring countries and our own shale gas resources, a draft of the gas utilisation master plan is being finalised, and will be taken through Cabinet before starting with stakeholder consultations,” she said. MORE