Mantashe Defends Natural Gas as Key to Africa’s Industrialisation and Energy Transition

Mineral and Petroleum Resources Minister Gwede Mantashe has strongly advocated for the development of natural gas across Africa, describing it as a crucial component of the continent's industrial growth and a practical pathway toward a "just and realistic energy transition."

Mantashe made the remarks during the 11th Africa Gas Forum, held alongside the Africa Energy Indaba in Cape Town, where policymakers, industry leaders and energy experts gathered to discuss Africa's energy future.

Energy Poverty Remains a Major Challenge

According to the International Energy Agency (IEA), approximately 600 million people in Africa lack access to electricity, a situation Mantashe described as both a social crisis and a barrier to economic development.

"Without reliable energy, there can be no manufacturing base, no beneficiation, and no meaningful job creation," he said.

Mantashe argued that Africa must shift its narrative from one defined by energy shortages to one focused on energy-driven industrial development, with natural gas playing a central role.

"Africa accounts for 7% of known global gas reserves and contributes less than 4% of global greenhouse gas emissions," he noted.

"In that context, the strategic utilisation of our domestic gas resources is not speculative; it is foundational to a just and realistic energy transition that recognises our socio-economic realities."

Natural Gas as a Transition Fuel

Experts increasingly view natural gas as a transition fuel that can help countries reduce carbon intensity while maintaining reliable power supply.

Mantashe said gas offers high-density baseload power with significantly lower emissions compared to coal, making it a practical bridge between fossil fuels and renewable energy.

"It is the bridge that allows us to industrialise while reducing carbon intensity," he said.

The Africa Gas Forum, he added, provides a critical platform for African countries to explore how gas resources can be harnessed to drive economic transformation and industrial growth across the continent.

South Africa's Energy Security Concerns

Mantashe also warned that South Africa faces a critical energy juncture, as gas supplies from Mozambique's Pande and Temane fields — which have provided about 90% of the country's gas supply for more than two decades — are now beginning to decline.

"This is not merely an industry concern; it is a national economic risk," he said.

The Minister cautioned that the country cannot afford to repeat the mistakes experienced in the electricity sector, where supply shortages led to widespread power outages.

To prevent a similar crisis in the gas sector, the government is implementing a two-pronged strategy involving short-term imports and accelerated domestic gas development.

Bridging the Supply Gap

As part of the short-term strategy, Mantashe highlighted Sasol's proposed Methane-Rich Gas (MRG) project, which could serve as a transitional solution between 2028 and 2030.

The project would help stabilise gas supply while South Africa completes infrastructure for liquefied natural gas (LNG) imports.

"Our strategic LNG hubs are progressing toward implementation," he said.

However, Mantashe emphasised that the long-term solution lies in domestic gas production.

Exploration and Development Projects

Despite opposition from environmental groups, offshore exploration activity in South Africa continues, with several projects underway.

Along the West Coast, the Orange Basin has emerged as a promising exploration frontier following significant discoveries in neighbouring Namibia.

Major operators such as TotalEnergies and Shell are conducting exploration programmes that could significantly expand the region's gas resources.

Meanwhile, in the Outeniqua Basin, Africa Energy Corp is advancing development of the Brulpadda and Luiperd gas discoveries, which could play a major role in South Africa's future gas supply.

Onshore projects are also progressing.

The Virginia Gas Project in the Free State has reported a 60% increase in gas throughput since 2025 and maintains an 80% drilling success rate.

Other projects include:

• Thungela Resources' Lephalale coalbed methane project, which has submitted an application for production rights

• Kinetiko's gas project in Mpumalanga, which is preparing to apply for production rights following successful drilling

In addition, the government recently completed a seismic survey in the Central Karoo to better understand the region's shale gas potential.

Once new regulations are finalised, the government plans to lift the existing moratorium on shale gas exploration.

Policy Reforms to Support Investment

To attract investment and strengthen regulatory clarity, the government has introduced several legislative reforms.

One key reform is the Upstream Petroleum Resources Development Act (UPRDA), which separates petroleum legislation from mining laws and simplifies the licensing framework for exploration and production.

The Act also introduces a 20% carried interest for the state, ensuring that the government benefits directly from the development of national petroleum resources.

Another major reform is the proposed South African National Petroleum Company (SANPC) Bill, which aims to create a unified state-owned entity responsible for managing the country's strategic petroleum interests.

Ending Policy Uncertainty

Mantashe said these reforms signal a turning point for South Africa's energy sector.

"The era of policy uncertainty is drawing to a close," he told industry stakeholders.

He emphasised that regulatory reforms, infrastructure development and stable demand conditions are creating a more favourable environment for investors.

Looking ahead, he said the next priority is to strengthen midstream infrastructure and downstream markets, enabling gas resources to support industrial production, employment creation and economic resilience.

"Let us build a foundation for prosperity rooted in our own resources," Mantashe said.

"Let us pursue energy security with pragmatism. And let us drill responsibly and strategically for the benefit of South Africa and the African continent."