Sasol, CEF team up to boost S African gas supply

South African energy companies Sasol and Central Energy Fund (CEF) have signed a memorandum of understanding to develop gas supply in the country, the partners said on September 7.

Gas will be a critical part of South Africa's "just energy transition," the companies said. Much of the country's gas supply comes from the Pande-Temane fields in Mozambique, which is pumped to South Africa via the ROMPCO pipeline, part-owned by Sasol and CEF. But new sources will be needed as this these deposits mature, the companies said.

Sasol and CEF will explore "developing multiple low-cost gas import locations around the country," and look at options "to develop and expand the South African gas market."

South Africa hopes to develop two gas fields recently discovered by TotalEnergies offshore, but is also looking at new import options, namely LNG terminals. Plans to develop LNG-to-power projects in South Africa suffered a setback in the summer after the government rejected an application by Turkey’s Karpowership to operate floating power plants at three of the country’s major ports.