In its latest policy brief, global trade association EnerGeo Alliance has underscored natural gas as the pivotal transition fuel for South Africa, emphasizing its reduced carbon emissions, scalability, and cost competitiveness. The African Energy Chamber (AEC), representing the voice of the African energy sector, supports these findings and urges increased foreign investment in Africa's natural gas prospects.

South Africa faces a pressing need to diversify its power supply away from aging coal- and diesel-powered plants. While the country looks to renewables to bolster its energy mix and mitigate power shortages, EnerGeo Alliance positions natural gas as the optimal fuel for achieving a low-carbon future and meeting the demands of South Africa's expanding population and economy.

According to the brief, countries utilizing natural gas for power generation have experienced electricity supply growth approximately three times faster than those without gas over the past decade. With over 620 trillion cubic feet of natural gas resources across the continent, the AEC advocates for the exploration and development of Africa's gas reserves, applauding EnerGeo Alliance for championing its expanded role in the energy landscape.

Natural gas emits 50-60% less carbon dioxide compared to coal, making it a cleaner energy source capable of reliably meeting power demands at scale. It also plays a crucial role in the production of fertilizers, petrochemicals, and as a source of process heat in energy-intensive industries, offering potential for decarbonization. The World Economic Forum highlights that tripling sub-Saharan Africa's power consumption using natural gas would lead to just a one percent increase in global carbon emissions.

Cost-effectiveness is another advantage of natural gas, serving as both base load and backup power, unlike solar and wind which face intermittency challenges. The policy brief asserts that South Africa's significant gas discoveries in Mossel Bay, the Orange River Basin, and prospective shale gas reserves in the Karoo Basin could not only meet domestic power demands but also stimulate broader economic growth through regional gas exports.

EnerGeo Alliance identifies strategic investment opportunities in South Africa's gas reserves, emphasizing upstream activities such as advanced seismic surveys and data generation to mitigate exploration risks and reduce environmental impacts. The country's midstream and downstream sectors, including transmission pipelines, storage facilities, and gas-to-liquids plants, require substantial investment to enhance gas availability and reliability.

NJ Ayuk, Executive Chairman of the AEC, emphasizes, "The AEC supports the EnerGeo Alliance in positioning gas as critical to South Africa's energy independence and low-carbon future. The science and economics support this stance. We must increase capital flows into African upstream and integrated gas projects and support the geoscience community to normalize natural gas exploration as a viable option."

The construction of gas-fired power plants at Coega, Richards Bay, and Saldanha Bay is underway, yet additional projects are essential to bolster South Africa's energy security and economic development through expanded gas utilization.