South African energy giant Sasol has unveiled an emergency gas bridging plan to avert a national energy crisis as domestic reserves from Mozambique approach depletion by mid-2028.
With the country’s gas-dependent industries staring down a “gas cliff”, Sasol is proposing to repurpose its Methane-Rich Gas (MRG)—a synthetic alternative produced at its Secunda plant—to maintain supply for two years, from 2028 to 2030.
But there’s a catch: Sasol must secure regulatory approval from Nersa for a new, higher gas price that reflects the real cost of MRG production. Without it, the plan could collapse under financial strain.
“If we don’t get pricing approval, the whole strategy falls apart,” a Sasol insider warned.
Key Challenges Ahead:
- Regulatory hurdles: Approval for a new Maximum Gas Price (MGP)
- Technical adjustments: MRG requires infrastructure upgrades
- Economic viability: MRG is more expensive than natural gas
As delays plague South Africa’s LNG import infrastructure, the clock is ticking. Sasol’s interim solution may be the only lifeline available to energy-intensive industries such as steel, food processing, and chemicals.
Without immediate action, the gas shortfall could trigger massive job losses, production halts, and economic disruption.
Source: Moneyweb
