Mantashe moves to assure on supply amid fears over ‘gas cliff’
Minister of Mineral Resources and Energy Gwede Mantashe says the government is working with the private sector to ensure the so-called gas cliff does not harm the economy or lead to job losses.
This comes after Sasol, which is South Africa’s monopoly supplier of large-scale natural gas, decided to suspend the supply of gas to industrial users by June 2026
Mantashe addressed the Africa Energy Indaba in Cape Town this morning and said the government is aware the economy cannot afford a shortage of gas.
"Our understanding is that this is in relation to the gas flow decline at source. It is a known fact that natural gas, like other natural resources, is a finite resource and, therefore, Sasol reaching a cliff in its gas block in Mozambique is not an anomaly.
Having noted this eventuality, we, together with the Department of Trade, Industry, and Competition, have established a task team that includes private sector players to develop a joint strategy that will ensure a seamless transition and business continuity, thus ameliorating potential job losses.”
Mantashe said his department would also present the country’s Gas Master Plan to the cabinet in March.
"We want to use gas in South Africa, we are committed to that. We are working against a lot of resistance where foreign-funded NGOs are blocking any exploitation of gas.
"Our view is that we must actually have a candid discussion whether we must stop development or can we have development working with climate conducive environment, they must complement one another.”
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