South African petrochemical giant Sasol has made progress on a methane-rich gas bridging solution at its Secunda operations, potentially delaying a gas supply cliff from 2028 until June 2030. The move addresses declining natural gas from Mozambique and offers temporary relief to industries reliant on gas. However, it requires regulatory approval and is not a long-term fix.
Amid concerns over a looming gas supply cliff in 2028 due to declining production from Mozambique, Sasol announced significant progress on a methane-rich gas (MRG) bridging solution at its Secunda operations. The company confirmed the technical feasibility of supplying MRG to external customers from July 2028 to June 2030, providing a two-year buffer for South African gas users.
“As natural gas production from Mozambique declines, Sasol has proactively explored alternative solutions to bridge the anticipated supply gap,” Sasol stated. The firm is engaging with customers to discuss the proposal, assess infrastructure compatibility, and confirm volume needs. This initiative is subject to approval of Sasol Gas’s Maximum Gas Price (MGP) application by the National Energy Regulator of South Africa (Nersa).
“The MGP will reflect the cost of acquiring MRG from Sasol South Africa, the producer, and will be determined in accordance with Nersa’s pricing methodology,” the company explained. Sasol has begun discussions with Nersa to ensure a fair process supporting economic viability for producers and traders.
Gas is vital to South Africa’s energy plans, yet a substantial supply-demand gap fuels industry anxiety. Key sectors like steel, gas, and ceramics in primary manufacturing depend heavily on it, as do households in Johannesburg suburbs such as Craighall Park, Parktown, and Emmarentia. The potential gas cliff threatens investments and expansions.
“We are faced with a gas cliff and Sasol’s intervention is critical. It buys us 12 months from today to come up with solutions,” said Jaco Human, executive officer of the Industrial Gas Users Association of Southern Africa. While this stopgap buys time, a longer-term solution remains urgently needed as the clock ticks.