Fri Sep 20 12:44:17 UTC 2024: ## Qatar Emerges as Top Contender for South Africa’s LNG Needs
**JOHANNESBURG** – South Africa is in a race against time to secure alternative natural gas supplies, with Qatar emerging as a leading contender. The country’s main gas source, operated by Sasol in Mozambique, is set to dwindle by 2027, leaving power utility Eskom and chemical giant Sasol scrambling for new options.
Eskom and Sasol have teamed up to secure a new LNG supply, with Qatar being the top candidate due to its vast gas reserves. Qatar has already expressed interest in collaborating with South Africa on this front, according to Energy Minister Kgosientsho Ramokgopa.
The urgency stems from the impending drop in gas supply, which could severely impact South Africa’s economy and its ability to meet its energy needs. Sasol will be forced to halt gas supply by mid-2027, except for its own operations. While they are aiming to extend this until 2028, finding a new source is crucial.
The move towards LNG is also driven by a need to reduce emissions for both Eskom and Sasol, who are the country’s top emitters of greenhouse gases.
However, the volatility of the South African currency poses a potential challenge as it could lead to price fluctuations in LNG imports. To mitigate this risk, the government is considering measures like currency protection or hedging.
While the deal is still in its early stages, both Eskom and Sasol are optimistic about securing a stable and reliable LNG supply from Qatar. The partnership is seen as a crucial step towards securing energy independence for South Africa and mitigating the potential energy crisis looming on the horizon.
First Piper 