Mantashe: Gas key to Africa's industry

Mineral and petroleum resources minister Gwede Mantashe has issued a robust defense of natural gas development, framing it as the most effective transition fuel for the continent. Speaking at the 11th Africa Gas Forum, held alongside the Africa Energy Indaba, Mantashe argued that gas is essential for a just and realistic energy transition that balances global climate goals with Africa’s socio-economic realities.

With approximately 600 million Africans lacking access to electricity, Mantashe described the energy deficit as both a social and industrial crisis. He noted that Africa holds 7% of known global gas reserves but contributes less than 4% of global greenhouse gas emissions. In this context, he argued that using domestic gas is foundational to industrialisation and job creation.

Averting a "Gas Cliff" in South Africa

Mantashe warned that South Africa faces a national economic risk as the Pande and Temane fields in Mozambique, which currently supply 90% of the country’s gas needs, begin to decline. To prevent an industrial crisis, the government is implementing a strategy focused on immediate liquefied natural gas (LNG) imports and accelerated domestic production.

Key domestic projects currently in development include the Orange Basin, which has emerged as a world-class frontier following significant discoveries in Namibia. In the Outeniqua Basin, development is accelerating at the Brulpadda and Luiperd discoveries. Onshore, the Virginia Gas Project in the Free State has reported a 60% increase in throughput, while coalbed methane projects in Lephalale and Mpumalanga are moving toward production.

Policy Reform and State Participation

The minister emphasised that the era of policy uncertainty is ending due to the Upstream Petroleum Resources Development Act (UPRDA). This legislation separates petroleum from mining laws and consolidates exploration and production into a single right to shorten administrative timelines. The Act also provides for a 20% carried interest for the state, ensuring national participation in resource returns.

Additionally, the South African National Petroleum Company (SANPC) Bill seeks to establish a unified state-owned champion to manage strategic interests across the value chain. Mantashe concluded by calling on investors to help convert gas molecules into industrial output, employment, and economic resilience, insisting that the regulatory framework is now stabilising.