Minister of Mineral Resources and Energy Gwede Mantashe says the private sector should collaborate with the government instead of ‘just crying’ when things go wrong.
Mantashe was addressing the Africa Energy Indaba in Cape Town, which dealt with concerns over South Africa’s gas and electricity supply.
He was responding to business and experts in the field, who have warned that South Africa would run out of gas in the next two years.
Mantashe said the government had noted concerns about gas supply due to commercial disputes between Sasol and its customers.
However, he said there were plans in place to address the shortage.
The Central Energy Fund’s subsidiary, iGas, has acquired an additional 40% ownership of the Republic of Mozambique Pipeline Investments Company pipeline.
South Africa and Mozambique now have joint ownership of 80% of the pipeline.
South Africa has also entered into a gas sales agreement with the Mozambican state-owned hydrocarbon company, which has the potential to deliver up to 200 petajoules of natural gas.
South Africa has also made ‘significant new finds of natural gas’, according to the Minister.
There is the recent discovery of gas reserves in the Outeniqua Basin and at Amersfoort, Mpumalanga.
‘And the state is quite comfortable supporting those companies because it’s not about government vs the private sector; it’s about cooperation.
“So the private sector [private businesses] must be a willing participant, not just a crying baby who asks where the government is when things go wrong – no.’
BusinessTech notes that the Department of Mineral Resources and Energy, before Mantashe and under him, has been one of the biggest impediments to private-sector electricity generation. President Ramaphosa forced Mantashe in 2021 to open up the electricity market – too late to prevent the worst levels of load shedding on record.