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Gas Market Optimization Key to Addressing South Africa’s Looming Energy Crisis

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Energy Crisis

By fast-tracking the development of recent gas discoveries, accelerating exploration activities and maximizing gas exploitation, South Africa has an opportunity to reduce blackouts across the country

JOHANNESBURG, South Africa, July 19, 2022/APO Group/ — 

While South Africa’s energy crisis continues to worsen with state utility Eskom intensifying the implementation of load shedding; maximizing the exploitation of the country’s gas reserves is key to ensuring energy security, affordability and reliability.

In addition to stabilizing energy supply, the optimization of the gas sector provides an opportunity for Africa’s second-largest economy to attract massive investments required to drive economic expansion through employment creation, GDP growth and industrialization.

However, various challenges, including unjustified energy transition-related litigations against hydrocarbon development, weak technical solutions, underdeveloped gas infrastructure, delays in gas project rollout, policy gaps and inadequate investments in exploration and production continue to hinder South Africa’s gas market from reaching its full potential, plunging the country’s energy sector into turmoil.

As litigation continues to scare away investments, with the country halting massive oil and gas investments of up to R1 billion within a period of less than two months – according to energy regulator Petroleum Agency SA – a major energy crisis is on the horizon for South Africa. In addition to this, major player ExxonMobil is also exiting the market, exacerbating the need to fast-track upstream production investments and activities in a major way.

“Our view is that natural gas will be part of the transition, and yet we are told that all fossil fuels are bad. Africa must position its oil and gas at the forefront of global energy. When we commit to net zero, we do so with the reality that energy can guarantee economic growth and industrialisation. The way forward is for Africa to make the most of its existing and applicable resources. The African continent must develop new technology and strategies to ensure it continues to develop its resources,” South African Minerals and Energy Minister, Gwede Mantashe, said during the opening ceremony of African Energy Week (AEW) last year.

There is a vital and urgent need for the country to ease regulation and create an enabling environment for oil and gas projects to take off

The African Energy Chamber (AEC), as the voice of the African energy sector, strongly believes that South Africa’s solution to addressing its current and looming energy problems is gas.

The Chamber is calling upon the South African government and energy market stakeholders to speed up the development of recent discoveries, including TotalEnergies’ Brulpadda and Luiperd projects, to generate additional energy capacity for security while also pushing forward exploration activities and infrastructure development across the upstream, midstream and downstream sectors.

“South Africa’s vast gas resources provide an opportunity to boost declining power generation and there is a vital and urgent need for the country to ease regulation and create an enabling environment for oil and gas projects to take off,” says NJ Ayuk, Executive Chairman of the AEC.

By easing regulation and replicating oil and gas environmental sustainability best practices such as those implemented in Mozambique and Namibia where massive gas projects such as the Graff, Venus, Coral Floating Liquefied Natural Gas (LNG), Area 1 LNG Trains 1 & 2 and the Area 4 LNG Trains 1 & 2 are being fast-forwarded for energy security, South Africa has an opportunity to attract investments required to curb its energy problems by leveraging domestic energy resources.

TotalEnergies’ planned $3 billion investment to bring up to 2.1 trillion cubic feet (tcf) of gas from the Luiperd and 1.3 tcf of gas from the Brulpadda projects on the market by 2027 is a step in the right direction.

“The best way for South Africa to get rid of load shedding in the long term is by optimizing the development and exploitation of its 60 tcf of gas reserves offshore and about 200 tcf that are onshore starting with TotalEnergies’ Brulpadda and Luiperd discoveries, while also creating an enabling environment for firms including major Shell to expand exploration activities,” Ayuk continues, adding that “Renewables, including solar and wind, remain expensive for ordinary people and will not provide the baseload power which South Africa requires to address its growing energy crisis. We believe a resilient energy mix in South Africa is one that encompasses more coal and gas.”

In this regard, AEC’s African Energy Week (AEW), Africa’s premier event for the oil and gas sector, which will take place from 18 – 21 October, 2022 in Cape Town, will host the country’s energy market stakeholders, policymakers and both regional and international energy companies and investors to discuss the role of gas in stabilizing South Africa’s energy production and supply.

AEW 2022 will host panel discussions and high-level meetings on the important role of indigenous gas in helping both South Africa and Africa as a whole to mitigate high energy prices and chronic shortages resulting from geopolitical tensions, and fast-track industrialization, manufacturing and accelerating job creation.

Distributed by APO Group on behalf of African Energy Week (AEW).

Business

SLB commissions new fluids systems plant in Pemba to support Mozambique’s offshore energy development

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Mozambique

New facility expands in-country drilling and completion fluids capability, advancing the next phase of SLB’s growth in Mozambique

PEMBA, Mozambique, October 9, 2026/APO Group/ –SLB (NYSE: SLB) (www.SLB.com) announced the opening of a new fluids systems plant in Pemba, Mozambique. The new facility strengthens in-country capacity to prepare, store and deliver drilling and completion fluids for offshore operations, reinforcing the infrastructure needed as Mozambique’s offshore activity grows and its role as a strategic energy hub for East Africa continues to expand.

The commissioning of the plant, also known as a liquid mud plant, coincides with SLB marking 70 years of operations in Mozambique. It reflects the company’s long-term commitment to investing in people, infrastructure and capability that support the country’s long-term offshore energy development plans.

 




  

With an initial storage capacity of 21,000 barrels, the liquid mud plant provides a scalable platform for future growth, supporting multiple customers and rising offshore activity while improving logistics and enhancing operational flexibility.

As SLB marks 70 years in Mozambique, this investment reflects our confidence in the country’s future and our commitment to supporting its energy ambitions

“As SLB marks 70 years in Mozambique, this investment reflects our confidence in the country’s future and our commitment to supporting its energy ambitions,” said Miguel Baptista, Central, East and Southern Africa, Managing Director, SLB. The new liquid mud plant strengthens local energy infrastructure, expands opportunities for local content development, and enhances our ability to support customers as they deliver some of Africa’s most significant offshore energy resources.”

The liquid mud plant project was delivered with strong local participation and that momentum is expected to continue into operations. During project delivery, more than 100 jobs were created in Pemba with nationals representing 80% of the workforce, reflecting a focus on building local capability.

The project was delivered with a strong focus on safety, operational integrity, and quality, achieving more than 67,000 hours worked without a recordable safety incident.

This key infrastructure strengthens SLB’s ability to support consistent service quality and enhance supply chain readiness for increasing offshore activity across Mozambique, supporting customers execute safely and efficiently while developing local skills and expertise.

Key Points:

  • SLB has commissioned a new fluids system plant in Pemba, expanding in-country drilling and completion fluids capability for offshore operations.
  • With an initial storage capacity of 21,000 barrels, the facility provides a scalable platform to support growing offshore activity in Mozambique.
  • The investment marks the next phase of SLB’s growth in Mozambique, strengthening local capability and supporting long-term offshore energy development.

Distributed by APO Group on behalf of SLB.

 

 




 

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South African Energy Storage Association (SAESA) welcomes 4,600 MW battery storage prioritisation and calls for integrated energy planning

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Battery energy storage systems (BESS) are becoming critical system infrastructure, supporting flexibility, reducing avoidable curtailment, shifting energy into periods of demand and strengthening security of supply

JOHANNESBURG, South Africa, October 9, 2026/APO Group/ –The South African Energy Storage Association (SAESA) (www.SAESA.org.za) welcomes the prioritisation of 4,600 MW of battery energy storage under the first Integrated Resource Plan (IRP) 2025 Section 34 determination.

 




  

The timing is significant. Recent Integrated Energy Plan (IEP) modelling and assumptions discussions highlighted a fundamental shift that South Africa’s energy planning now needs to capture: we cannot plan the future power system by counting megawatts of generation alone.

We must plan for when energy is available, where it is available, how it moves through a constrained grid and how it is stored and dispatched when the system needs it most.

The announcement reinforces that shift. Battery energy storage systems (BESS) are becoming critical system infrastructure, supporting flexibility, reducing avoidable curtailment, shifting energy into periods of demand and strengthening security of supply.

For SAESA, the message for the IEP is clear: storage, flexibility and system services must be modelled as integral components of South Africa’s future electricity architecture, with their contribution considered from the outset of generation planning.

“The IEP must plan the power system we are becoming, not simply model the power system we have inherited,” says SAESA.

The IEP must plan the power system we are becoming, not simply model the power system we have inherited

Partnership with C&I Energy + Storage Summit

SAESA is an association partner of the C&I Energy + Storage Summit, created by VUKA Group, taking place on 28–29 October 2026 at The Maslow Hotel, Sandton, Johannesburg.

The summit brings together commercial and industrial energy users, project developers, financiers, regulators and solution providers to explore practical approaches to energy security, procurement and storage deployment.

For businesses assessing how storage can support their operations, the event offers an opportunity to meet SAESA and engage with the wider energy community on the decisions shaping South Africa’s evolving electricity system.

Commercial and industrial energy decision-makers are invited to apply to attend as hosted buyers. Qualifying buyers receive complimentary summit access and curated opportunities to engage with industry partners.

 

Meet SAESA at C&I Energy + Storage Summit: Join the Hosted Buyer Programme

The Hosted Buyer Programme connects commercial and industrial energy decision-makers with solution providers shaping South Africa’s evolving private energy market.

Qualified energy buyers receive complimentary access to the summit and curated engagement with industry partners exploring energy procurement, storage deployment and project development.

Apply for the Hosted Buyer Programme (https://apo-opa.co/4ehLijJ)

Distributed by APO Group on behalf of VUKA Group.

 




 

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Afreximbank welcomes launch of Africa Credit Rating Agency as an important step in strengthening Africa’s financial architecture

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Expanding credible rating coverage can improve the information available to investors and support the development of deeper domestic and regional capital markets

PORT LOUIS, Mauritius, October 8, 2026/APO Group/ –African Export-Import Bank (Afreximbank) (www.Afreximbank.com) welcomes today’s launch of the Africa Credit Rating Agency (AfCRA), an important milestone in strengthening Africa’s financial architecture and expanding the continent’s capacity to generate credible, independent analysis of African credit risk.

 




 
 

Credit ratings play an important role in determining access to capital, influencing investor perceptions and shaping the cost at which governments, institutions and businesses can finance development. It is therefore essential that assessments of African credit risk are independent, rigorous and evidence-based, while reflecting a complete understanding of the structures, institutions and economic realities being assessed.

The establishment of AfCRA adds an important African-led source of credit opinion to the market. Its value will not be measured by whether it produces more favourable ratings, but by the credibility of its analysis, the quality of its data and transparency of its methodology, and its ability to deepen understanding of African sovereigns, sub-sovereigns and corporate credit.

This is particularly important given that many African issuers remain unrated, while local-currency and sub-sovereign markets continue to have limited rating coverage. Expanding credible rating coverage can improve the information available to investors and support the development of deeper domestic and regional capital markets.

AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans

Alongside fellow members of the Alliance of African Multilateral Financial Institutions (AAMFI), Afreximbank has consistently maintained that African Multilateral Financial Institutions should be assessed on the basis of their fundamentals, performance, legal frameworks, mandates and operating models. Ensuring that these institutional characteristics are properly understood is essential to achieving informed, balanced and credible assessments of African risk.

Commenting on the uniqueness of the African market, and need for AfCRA’s rating methodology to reflect this, Mr Denys Denya, Senior Executive Vice President, Afreximbank, said: “The rating methodology AfCRA develops must recognise the uniqueness of our environment and its institutional structures. The Agency must set its own standards and not follow those set elsewhere — it must build a unique identity that conforms to an ‘African best practice.”

Highlighting the need for the autonomy of the Africa Credit Rating agency as it takes off, Mr Denya added: “Most importantly, AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans. We must all use it, and in return expect a complete assessment of where we (Africa) stand: the strengths the market has ignored, and the weaknesses we still need to fix.”

AfCRA should therefore be seen as complementary to existing international and regional rating agencies, broadening the range of credible analysis available to investors and issuers while strengthening competition, transparency and analytical capacity within Africa’s credit markets.

As Africa seeks to mobilise the scale of capital required for industrialisation, trade, infrastructure and economic transformation, credible African institutions that improve information, strengthen market confidence and deepen the continent’s financial markets will become increasingly important.

Afreximbank congratulates the African Union, the African Peer Review Mechanism (APRM) and all those involved in bringing AfCRA from concept to launch, and looks forward to the contribution the Agency will make to deeper, more transparent and more efficient African capital markets.

Distributed by APO Group on behalf of Afreximbank.

 




 

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