SA faces gas cliff as Mozambique supplies decline
SA's gas industry is experiencing a decline that threatens gas-to-power development.
South Africa's gas industry is facing a significant challenge known as the "gas cliff," which could impact gas-to-power development and energy security. Gas producers, infrastructure developers, and industry players have gathered for a webinar to discuss the issue. The country has long relied on natural gas from Mozambique's Pande and Temane fields, but these reserves are declining.
This decline has caused South Africa to miss the boat in terms of gas development, leaving the nation now officially in the gas cliff stage. The government is not adequately engaging with the private sector to address this issue, which is crucial for the country's industrial production, investment, employment, and economic competitiveness.
Jaco Human, Executive Officer of the Industrial Gas Users Association of Southern Africa, emphasizes the need for better coordination and government involvement in navigating the gas cliff and unlocking the gas economy.
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