Gas
South Africa faces gas exploration hurdles and regulatory delays
South African Finance Minister Enoch Godongwana has highlighted regulatory hurdles, legal challenges, and institutional constraints as major obstacles holding back domestic gas exploration and economic growth.
Key points
- Finance Minister Enoch Godongwana pointed to regulatory barriers and legal challenges affecting gas exploration.
- Industry associations report that exploration approvals take up to five years in South Africa compared to months elsewhere.
- Upcoming declines in pipeline gas supplies from Mozambique add urgency to the country's energy concerns.
What happened
According to TimesLIVE reporting, South African Finance Minister Enoch Godongwana stated in Cape Town that regulatory frameworks, constitutional rules, corruption, and constrained state capacity are deterring investment. Speaking alongside RMB chief economist Isaah Mhlanga, the minister noted that firms previously explored for gas locally before moving their operations to Namibia following persistent environmental legal challenges.
The South African Offshore Petroleum Association indicated that prolonged administrative procedures and litigation have stalled offshore projects. While other African jurisdictions grant exploration permits within three to nine months, procedures in South Africa can extend to five years, according to association representative Niall Kramer. Consequently, the industry has advocated for specialized environmental courts to expedite dispute resolution.
Not all project terminations stem from legal disputes. TotalEnergies withdrew from offshore block 11B/12B in July 2024, citing commercial and marketing challenges associated with local gas production, following the earlier exit of CNR International.
What comes next
These exploration setbacks compound anxieties regarding future energy availability. South Africa anticipates a potential cessation of pipeline gas imports from the Pande and Temane fields in Mozambique by the middle of 2028. Industry stakeholders have cautioned parliamentary representatives that fragmented policies and regulatory ambiguity are delaying responses to the projected supply deficit.
Why it matters
Delays in developing domestic resources carry serious implications for regional energy security and industrial competitiveness. South Africa records an electricity use per person of 3308.2 kWh in 2024, according to World Bank figures, remaining slightly below the global average of 3708.5 kWh. With electricity access standing at 90.2 percent of the population in 2024, reliable gas supplies are vital for industrial stability and power generation as older import sources decline. For investors across the continent, transparent regulatory frameworks and predictable approval timelines remain critical prerequisites for committing capital to major upstream energy projects.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
0.0% of electricity in South Africa came from gas in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
