South Africa is moving to accelerate domestic natural gas development after the Petroleum Agency South Africa (PASA) granted three petroleum exploration rights to D3 Energy in February 2026. The approvals — covering Exploration Rights ER391, ER392 and ER393 in the Free State Province — enable D3 Energy to explore for petroleum, natural gas and helium resources, triggering the next step of environmental authorisation and public consultation.
The approvals build on D3 Energy’s earlier Technical Cooperation Permit TCP273, covering approximately 82,777 acres. ‘The acceptance of these exploration right applications marks another meaningful step in advancing our onshore gas and helium strategy in the Free State,’ said Managing Director David Casey.
South Africa currently imports roughly 90% of its natural gas — mostly from Mozambique — motivating a national strategy to fast-track domestic upstream development and raise the hydrocarbon sector’s contribution to GDP from approximately 1% to 4% over the medium term.
D3 Energy’s approvals are part of a broader licensing push. In January 2026, H2Au Ltd secured PASA approval for two exclusive exploration rights covering more than three million acres in the Bushveld Complex, targeting natural hydrogen. Additional rights have recently been granted to Kinetiko Energy, Plateau Helium and Motuoane Energy, reflecting renewed investor interest in onshore gas.
On the regulatory front, South Africa is finalising the Upstream Petroleum Resources Development Act 2024, with the draft released for public consultation in January 2026. The legislation is expected to introduce clearer licensing rules and improve investor certainty. Separately, the country lifted its long-standing moratorium on shale gas exploration in October 2025, potentially unlocking the Karoo Basin’s estimated reserves of over 200 trillion cubic feet. Analysts note that while the licensing momentum is encouraging, only sustained capital deployment and timely final investment decisions will confirm whether the country has truly entered a development phase.
Source: energycapitalpower.com