SA has ‘four months’ to avoid a natural gas Day Zero as Sasol contract supply crisis looms

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SA has ‘four months’ to avoid a natural gas Day Zero as Sasol contract supply crisis looms
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The halt of gas supplies to South Africa will have dire consequences as the resource is estimated to support as many as 70,000 jobs and contributes up to R500-billion a year to the domestic economy.

Sasol will stop supplying natural gas from Mozambique when its contract with the country ends in June 2026. The halt of gas supplies to South Africa will have dire consequences for the economy and job security in the country.

A Day Zero — a situation in which South Africa runs out of gas — will also impact individuals and businesses, said the Industrial Gas Users’ Association of Southern Africa , which represents industrial gas users such as Consol Glass, Illovo, Nampak, Mondi, ArcelorMittal, South32, South African Breweries and Coca-Cola. These companies depend on uninterrupted gas supplies for their operations.

Although 2026 may seem relatively far off, gas pipelines and other infrastructure will have to be built and commissioned in the coming months so that the flow of gas begins to yield benefits. In the early 2000s, Sasol entered into a contract with the governments of Mozambique and South Africa to explore the Pande and Temane gas fields.The company also supplies gas from its plant in Secunda to KwaZulu-Natal and Mpumalanga via the Lilly and SWM pipelines.

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