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Economy

South Africa Faces Impending Gas Shortage, Intensifying Energy Crisis

Wednesday 12 June 2024 - 13:45

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South Africa's energy challenges are poised to worsen as the nation confronts a looming gas shortage, exacerbating the longstanding electricity crisis that has persisted for over a decade. This imminent disruption in gas supply from Mozambique threatens to cripple various sectors of the economy, ranging from industries and mines to restaurants and households, where natural gas plays a crucial role in operations, cooking, and heating.

Warnings have been mounting, urging the government to address this pressing issue before it deals a severe blow to South Africa's already struggling economy. The Industrial Gas Users Association of Southern Africa (IGUA-SA) has cautioned that while the anticipated disruption in gas supply is projected for 2026, the country has mere months to secure alternatives and avert a shortage of this essential energy source.

Despite the seemingly distant timeline, the association emphasizes the urgency of constructing and commissioning new pipelines and infrastructure in the coming months to maintain current gas flow levels.

Busisiwe Mavuso, the president of Business Leadership South Africa (BLSA), echoes these concerns, highlighting the need for substantial investments to develop new gas sources and adequate transportation infrastructure.

However, the government's apparent indifference to these alarms resembles the complacency that exacerbated the electricity crisis, with no tangible measures in sight to address the looming gas shortage.

Mavuso laments the lack of viable solutions from the government to safeguard the numerous businesses that collectively employ over 70,000 people and generate more than $27 billion (500 billion rands) annually for the country's economy.

Current projections paint a grim picture, with a potential 12-to-18-month gap between the cessation of gas supply and the commissioning of any new sources. During this period, the economic fallout will be severe and far-reaching.

The impending gas shortage is a formidable challenge on South Africa's horizon, one that demands swift and effective action to prevent a further escalation of the energy crisis and its detrimental consequences on economic activity and employment.

As the nation grapples with this looming crisis, the urgency for decisive measures from the government cannot be overstated. Failure to act promptly could plunge South Africa deeper into an energy abyss, with dire ramifications for its already strained economy and the livelihoods of its citizens.