South Africa Proposes Massive $12 Billion LNG Deal with Trump Administration
South Africa has proposed purchasing liquefied natural gas from the United States over a 10-year period worth up to $12 billion as the country seeks to secure favorable trade arrangements with the Trump administration amid strained diplomatic relations.
The proposal involves importing 75 to 100 million cubic metres of LNG annually from the world’s top LNG exporter, potentially unlocking $900 million to $1.2 billion in annual trade value. Minister in the Presidency Khumbudzo Ntshavheni clarified that US LNG would complement rather than replace South Africa’s current gas supplies.
The comprehensive trade package includes exploring cooperation in fracking technologies to unlock South Africa’s Karoo region gas reserves, despite the country’s current moratorium on shale gas exploration due to environmental concerns. Additional proposals encompass duty-free exports of 40,000 vehicles annually, automotive components, 385 million kilograms of steel, and 132 million kilograms of aluminum per year.
President Cyril Ramaphosa reportedly proposed the LNG deal during his White House visit, attempting to repair relations after President Trump cancelled aid to South Africa and accused the government of “egregious actions.” The Trump administration has criticized South Africa’s genocide court case against Israel and various domestic policies, with Elon Musk condemning what he terms “openly racist policies.”
South Africa currently imports most of its gas from Mozambique via pipeline, with TotalEnergies seeking approval to lift force majeure on its $20 billion Mozambique LNG project that was halted in 2021 due to Islamic State-linked militant attacks in the Cabo Delgado region.
Source: oilprice.com