The gas equation
While debate about hydraulic fracturing for shale gas in the Karoo continues to grab the media spotlight, the broader discourse about the role of gas in South Africa’s energy mix needs to continue. With this in mind, this analysis investigates the current state of the natural gas industry in South Africa and evaluates the potential for its future development.
In carrying out the research, we aimed to determine whether:
- There is significant interest in exploring for and/or developing a local natural gas industry in South Africa;
- It will be profitable for energy companies to engage in exploration and production (E&P) activities;
- It will be profitable for energy companies to engage in gas import and distribution activities;
- There will be wider environmental benefits for the country if that increased gas use displace some elements of coal-fired energy generation;
The South African economy will benefit from gas developments through increased energy security; and - Increased availability of natural gas will enable South Africa to maintain its leading position in the gas-to-liquids sector.
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