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South Africa can Realize its Gas Potential with a Balanced Gas-to-Liquids Strategy (By NJ Ayuk)

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African Energy Chamber

South Africa’s gas potential is currently locked up, partly because of legal challenges initiated by environmental activist groups that halted projects to the tune of USD1.6 billion, but also due to the inability of all parties involved to come to an agreement

JOHANNESBURG, South Africa, November 13, 2025/APO Group/ —By NJ Ayuk, Executive Chairman, African Energy Chamber (https://EnergyChamber.org/)

 

It is not an exaggeration to say that South Africa’s offshore gas discoveries offer up a potential economic transformation for the country that would be on par with Guyana’s oil-driven boom or Suriname’s emerging energy sector.

Estimates for the Luiperd-Brulpadda gas-condensate project, in Block 11B/12B off South Africa’s southern coast, gauge its holdings at 3.4 trillion cubic feet (tcf) of gas and 192 million barrels of gas condensate. Production at this site would equate to thousands of jobs and a revitalization of regions like Mossel Bay, where South Africa’s gas-to-liquids refinery once fueled local employment and industry before declining production forced cutbacks.

Unfortunately, this could all be just wishful thinking, as TotalEnergies’ exit from this project in 2024 revealed a critical barrier.

South Africa’s gas potential is currently locked up, partly because of legal challenges initiated by environmental activist groups that halted projects to the tune of USD1.6 billion, but also due to the inability of all parties involved to come to an agreement on gas purchase pricing.

The GTL Solution 

A gas-to-liquids (GTL) strategy — one that links prices to liquefied natural gas (LNG) spot markets and includes meaningful community engagement — would help balance the needs of upstream investors, downstream users, and the coastal communities while delivering sustainable growth for the rest of the nation.

The gas pricing dilemma is the main obstacle.

Upstream companies like TotalEnergies demand dollar-based contracts to mitigate currency risk and ensure returns on their substantial exploration investments. The South African government is justifiably wary of dollar-denominated agreements and would prefer rand-based prices to protect local consumers and maintain affordability. The impasse TotalEnergies encountered on this issue is one of the factors behind their withdrawal from Block 11B/12B, despite their promising, hard-won discoveries at the site.

 

The domestic market complicates the situation even further.

Electricity producers require low gas prices, as they operate on slim margins once carbon costs are accounted for. Upstream operators, on the other hand, need to collect higher prices to justify the development of their capital-intensive deepwater projects. Meanwhile, the global LNG market is expected to remain saturated for the next three to five years, making the export of gas in the form of LNG a less competitive option for now. Without a pricing compromise, South Africa’s gas remains untapped, leaving behind all the profit and opportunity it represents.

For South Africa to truly benefit from its gas resources, President Cyril Ramaphosa’s administration must move beyond the traditional focus on coal and mining

A GTL strategy offers a multifaceted solution, however. By revitalizing the PetroSA GTL facility in Mossel Bay and converting natural gas into high-value liquid fuels like diesel and kerosene on site, South Africa could cut its reliance on fuel imports, strengthen its energy security, and extend employment opportunities to thousands of workers.

The precedent is clear: In Suriname, TotalEnergies’ GranMorgu deepwater project is set to generate 6,000 local jobs and inject at least USD1 billion into the economy. A similar initiative at the dormant Mossel Bay facility could transform South Africa’s southern coast, providing the government with fresh revenue and wider economic stability.

This is not mere optimism; this gameplan would be a practical means of leveraging existing infrastructure to drive regional development. But, once again, the economic viability of a GTL strategy as a solution for South African gas production hinges on securing a gas pricing agreement that satisfies the needs of both producers and consumers.

To resolve this pricing stalemate, South Africa should adopt a formula that ties the gas purchase price to the global LNG spot price, minus a percentage to reflect the absence of liquefaction and transportation costs. This approach would allow upstream companies to receive dollar-based payments, satisfying their financial requirements while aligning with the inherent shifts in the global market. Downstream, power producers and GTL operators would enjoy the affordability of discounted pricing, making projects economically feasible at both ends of the supply chain.

Furthermore, the government could incentivize GTL development through tax breaks, infrastructure subsidies, or public-private partnerships, so the economic benefits of these projects would be more likely to outweigh the initial costs. This pricing model would be a fair compromise that avoids the pitfalls of rand-based contracts and meets the needs of all stakeholders.

Additional Roadblocks

Overcoming environmental opposition is another critical step toward progress in gas development, and overlooking community engagement in this regard only empowers non-governmental organizations (NGOs) to challenge projects in court. Petroleum Agency SA’s community awareness campaigns, which educate locals about the benefits and risks of gas development, offer a model for improvement in this area. Expanding such efforts to include early and transparent engagement in the environmental impact assessment (EIA) process would help build trust and reduce grounds for legal action.

Town hall meetings and accessible EIA summaries would be a means of highlighting the economic benefits of a GTL strategy. By involving communities as stakeholders, the government and industry can work together to demonstrate that gas development can create shared prosperity.

The implementation of a GTL strategy is itself another way of addressing the legal pushback brought against South African exploration projects. Liquid fuels produced domestically reduce emissions by avoiding long-distance shipping, meaning that a GTL strategy is already in alignment with environmental goals from the start. Emphasizing the lower carbon footprint of a GTL operation would go a long way in gaining public approval of the project, but the government must still work to speed up the permitting process by establishing clear, time-bound guidelines for EIAs and consultations. Mechanisms should also be put in place to limit repetitive, post-approval legal challenges and allow projects to proceed without endless litigation.

A dedicated task force of industry, government, and local representatives would strengthen South Africa’s negotiating power and help hold projects accountable to environmental and social standards.

A Collaborative Path Forward 

Extracting and monetizing the gas resources held in Block 11B/12B and elsewhere could be a course-correcting game-changer for South Africa, but doing so to the greatest possible benefit requires bold, collaborative action. For South Africa to truly benefit from its gas resources, President Cyril Ramaphosa’s administration must move beyond the traditional focus on coal and mining, prioritize gas development, and embrace the potential of a GTL strategy.

By reviving the defunct Mossel Bay GTL facility and implementing a pricing model tied to LNG spot prices, the government can satisfy the needs of both upstream and downstream stakeholders while creating jobs for South Africans and reducing their dependency on imports. Simplifying the permit process and expanding community engagement would address environmental concerns so that projects can move forward without unnecessary delays or lawsuits.

With decisive leadership and a commitment to balance, South Africa can transform its gas potential into a catalyst for sustainable growth and secure a prosperous future, not just for the industry, but for the nation as a whole.

Distributed by APO Group on behalf of African Energy Chamber.

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Energy Capital & Power Establishes London Entity, Expanding Global Platform for Energy and Mining Events

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The move strengthens ECP’s presence in the UK and Europe, and its ability to connect African and South American markets with global investors

LONDON, United Kingdom, August 6, 2026/APO Group/ –International events company Energy Capital & Power (ECP) (www.EnergyCapitalPower.com) has officially established its UK entity in London, marking a milestone in the company’s growth strategy and reinforcing its ability to deliver world-class energy and mining events and campaigns in the UK and Europe.

By establishing a presence in a key hub like London – the pre-eminent energy and mining finance center – ECP actively shapes the global energy conversation. The expansion positions ECP to better serve clients, partners and investors seeking to develop business opportunities between Africa, Europe, the Americas and energy markets worldwide.

Opening our UK company brings ECP closer to key investors in the global energy finance capital

The milestone comes as ECP strengthens its reach through a series of investment platforms that connect global capital to energy and mining projects. These include the Venezuela Energy Week London Showcase on July 30 – with over 300 delegates registered – and the annual Invest in African Energy Forum, held in Paris as the premier event connecting global investors to Africa’s energy transformation.

ECP hosts high level summits and investor conferences in leading energy and minerals producing countries in Africa and South America, including: Venezuela Energy Week; Angola Oil & Gas; MSGBC Oil, Gas & Power; African Mining Week; Libya Energy & Economic Summit; Congo Energy & Investment Forum; South Sudan Oil & Power; and Caribbean Energy Week. The company has hosted investor forums and supported licensing round roadshows in Houston, London and Paris since 2016.

“Opening our UK company brings ECP closer to key investors in the global energy finance capital,” states CEO James Chester. “Having a permanent presence in London further cements our footprint in Europe, enabling us to fulfil our mission to bring minerals and energy investment to diverse global markets.”

With teams located across Africa, Europe and the Americas, ECP has long-facilitated strategic engagement, market intelligence and industry convening, uniting investors with leading energy and mining projects.

Distributed by APO Group on behalf of Energy Capital & Power.

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Guyana’s Next Wave of Offshore Projects Sets the Stage for Caribbean Energy Week Launch

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Etu Energias

The Caribbean Energy Week 2027 launch in Georgetown on September 1 will highlight the multi-billion-dollar developments driving Guyana toward 1.7 million bpd and creating new opportunities across the energy value chain

GEORGETOWN, Guyana, August 6, 2026/APO Group/ –Guyana’s rapidly expanding offshore development pipeline will take center stage when government officials, operators, investors and service providers gather in Georgetown on September 1 for the official launch of Caribbean Energy Week 2027. As the country advances a series of multi-billion-dollar developments across the Stabroek Block, the launch event will provide an early look at the projects, partnerships and investment opportunities expected to define Guyana’s next phase of growth.

 

With more than 30 discoveries made to date and multiple projects under construction or progressing through development, Guyana is targeting oil production of 1.3 million bpd by the end of 2027 and 1.7 million bpd by 2030, up from approximately 900,000-910,000 bpd today. As exploration success transitions into long-term production growth, opportunities are expanding across upstream development, offshore infrastructure, engineering, logistics and oilfield services.

Among the most significant near-term milestones is the Uaru development, ExxonMobil’s fifth sanctioned project offshore Guyana, which is expected to achieve first oil in 2026. The $12.7 billion development will produce up to 250,000 bpd from approximately 800 million barrels of recoverable resources across the Uaru, Mako and Snoek fields, utilizing up to 76 development wells and an FPSO with storage capacity of two million barrels.

Production capacity will expand further through the Whiptail development, ExxonMobil’s sixth sanctioned project in Guyana. Targeting first oil in late 2027 or early 2028, the $12.7 billion project will unlock approximately 850 million barrels across the Whiptail, Pinktail and Tilapia fields through up to 72 development wells. Designed to produce 250,000 bpd, the development will utilize the Jaguar FPSO currently under construction by SBM Offshore.

Looking beyond the current construction pipeline, Guyana is already advancing the projects expected to sustain production growth toward its 2030 target. The Hammerhead development, approved in 2025, is expected to commence production in 2029 with capacity of 150,000 bpd, while the proposed Longtail development would combine the Longtail, Tripletail and Turbot discoveries into one of the country’s largest integrated offshore developments, with planned production of 1.5 billion cubic feet of gas per day and 290,000 bpd of condensate.

These projects illustrate the scale of Guyana’s long-term development pipeline and the breadth of opportunities emerging across the energy value chain. Beyond offshore production, continued investment will be required across subsea systems, floating production infrastructure, drilling, marine logistics, engineering services, gas infrastructure and local content development as successive projects move toward execution.

Caribbean Energy Week 2027 will host its in-country launch at the Guyana Marriott Hotel in Georgetown on September 1, 2026, bringing together government officials, investors, operators and industry stakeholders for an early look at the opportunities, priorities and partnerships that will shape the region’s energy future. To register, please visit https://apo-opa.co/4cql5i3

 

Distributed by APO Group on behalf of Energy Capital & Power.

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South Sudan Oil & Power Returns as South Sudan’s Premier Investment Platform

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South Sudan

Returning for its seventh edition on November 24-25, South Sudan Oil & Power 2026 will bring together government, investors, operators and energy leaders to advance partnerships that unlock South Sudan’s energy potential and support nationwide economic development

JUBA, South Sudan, August 5, 2026/APO Group/ –South Sudan Oil & Power (SSOP) will return to Juba on November 24-25, 2026, reaffirming its position as the country’s official energy investment event and premier meeting place for stakeholders shaping South Sudan’s energy future. Fully endorsed by the Ministry of Petroleum, the seventh edition will convene senior government representatives, investors, international and national oil companies, financiers, service providers and development partners to advance investment across South Sudan’s energy sector.

Held under the theme “Resource Renaissance – Energy-Fueled Growth for a New Generation,” SSOP 2026 marks the return of the country’s flagship energy investment event at a pivotal moment for the industry. As South Sudan works to maximize the value of its natural resources, strengthen energy and export infrastructure and expand economic opportunities beyond the upstream sector, the conference will serve as a platform for securing the partnerships and investment needed to support long-term industrial growth, energy security and national development.

 

South Sudan’s oil sector is entering a new phase of recovery and investment, with production gains, renewed operational activity and infrastructure restoration driving momentum across the market. Operators are advancing field optimization and rehabilitation programs, with Greater Pioneer Operating Company recently recording its highest production in two decades at more than 60,000 barrels per day, while Sudd Petroleum Operating Company is pursuing production growth at Block 5A. Dar Petroleum Operating Company continues to expand activity across its producing assets. In March 2026, the company announced a discovery at the Al-Nahla field, improving production flows from Blocks 3 and 7.

 

Exploration represents another growth frontier for the country. While South Sudan holds up to 3.5 billion barrels of estimated reserves, approximately 90% of these resources remain undeveloped. The government seeks to raise these numbers by attracting investment across the entire oil value chain and facilitating greater exports.

 

With oil remaining the backbone of South Sudan’s economy, the government is prioritizing investment that sustains production growth, strengthens export resilience, develops local content and unlocks greater value across the energy value chain. SSOP 2026 will provide investors with direct access to South Sudan’s key energy stakeholders, including the Ministry of Petroleum, national oil company Nilepet and the country’s leading operators, while fostering engagement with African energy institutions and national oil companies, including South Africa’s South African National Petroleum Company, alongside the broader international investment community.

 

Building on the success of previous editions, SSOP has established itself as South Sudan’s leading platform for commercial engagement and strategic dialogue. The 2023 edition welcomed more than 600 delegates from 24 countries, including six government ministers, and resulted in five strategic agreements spanning upstream exploration, drilling capacity expansion, mining cooperation and regional energy collaboration. Bringing together stakeholders from across East Africa alongside partners from the U.S., China, Saudi Arabia, Canada, Egypt, Turkey and Norway, the conference reinforced South Sudan’s role as a regional investment destination and demonstrated its ability to translate dialogue into tangible commercial outcomes.

 

As South Sudan advances its long-term development agenda, SSOP 2026 will serve as a catalyst for new investment, strategic partnerships and regional cooperation. By bringing together government leaders, operators, investors and technology providers, the conference will help unlock the capital and expertise needed to transform South Sudan’s resource potential into lasting economic value.

Distributed by APO Group on behalf of Energy Capital & Power.

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