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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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Siemens Energy Expands Angola Footprint as Senior Vice President (SVP) Waheed Abbasi Joins Angola Oil & Gas (AOG) 2026

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From FPSO power solutions to local service capacity, Siemens Energy is scaling its role in Angola at a time when the country is pursuing gas expansion

LUANDA, Angola, April 28, 2026/APO Group/ –Waheed Abbasi, Senior Vice President, Gas Services: Europe and Africa at Siemens Energy, has joined the Angola Oil & Gas (AOG) Conference and Exhibition as a speaker. Abbasi’s participation comes at a time when Siemens Energy is deepening its footprint in Angola through major power infrastructure and local capacity investments, positioning itself as a key enabler of the country’s evolving oil and gas market. At the event this September (9-10), Abbasi is expected to bring insights into how power technology and gas infrastructure are converging to support Angola’s next phase of industry growth.

With a long-standing presence in Angola, Siemens Energy has played a central role in strengthening power and infrastructure systems through projects in the oil, gas and renewable energy sectors. The company is currently developing an 80 MW power generation plant for the Kaminho FPSO – part of the first large deepwater development in the Kwanza Basin. The FPSO, currently 50% complete, will be installed in 2027 with first oil produced from the Cameia field in 2028. By integrating advanced power generation systems into offshore infrastructure, Siemens Energy is supporting more efficient, lower-emission production while ensuring reliable operations in deepwater environments.

At the same time, Siemens Energy has strengthened its on-the-ground presence with the launch of its Angola Service Shop in 2026. The facility brings service execution, project support, training and critical spare parts closer to customers, enabling faster response times and improving operational reliability across Angola’s oil and gas sector. By anchoring its services locally, Siemens Energy is not only supporting existing projects but also building the infrastructure needed to sustain long-term industry growth, reinforcing supply chain resilience and technical capacity within the country.

Siemens Energy’s activities in Angola form part of a broader continental strategy, with the company active in more than 50 African countries and leading initiatives across power generation, renewable energy and hydrogen development. This pan-African footprint positions Siemens Energy as a key partner for governments seeking to balance industrial growth with energy transition goals. In Angola, this is particularly relevant as the country looks to diversify its energy mix while leveraging its hydrocarbon resources to drive economic development.

Angola’s strategy to increase the share of gas in its energy mix to 25% is creating new opportunities for companies like Siemens Energy to deploy gas-to-power solutions. The start of key projects, including the country’s first non-associated gas project – led by the New Gas Consortium –, is expected to unlock greater gas flows, supporting both LNG exports and domestic power generation. As gas availability increases, the need for efficient power generation, grid infrastructure and industrial energy solutions will become more critical. Siemens Energy’s technology portfolio, spanning gas turbines, power systems and integrated energy solutions, positions the company to play a central role in enabling this transition.

Stepping into this picture, Abbasi’s participation at AOG 2026 comes at a time when Angola is aligning upstream growth with downstream and power sector expansion, creating a more integrated energy ecosystem. The event will provide a platform for discussions around gas monetization, power infrastructure and industrial development, areas where Siemens Energy is actively contributing.

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

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African Mining Week (AMW) to Showcase Emerging Mining Frontiers as Africa Ramps Up Geomapping

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The upcoming African Mining Week will connect global investors with emerging opportunities across Africa’s mining sector amidst a surge in national geomapping exercises across the continent

CAPE TOWN, South Africa, April 28, 2026/APO Group/ –State agencies the Ghana Gold Board and the Ghana Geological Survey Authority have signed an agreement to co-conduct geological surveys in the Funsi, Atuna and Bensere East regions. The initiative aims to expand national gold reserves, increase output and support the formalization of artisanal mining operations. The agreement is part of a growing trend across Africa, with mineral-rich countries embarking on national geomapping programs to strengthen mineral production, de-risk exploration projects and position the continent as a key player in the global mineral supply chain.

 

Acceleration in geomapping exercises will be a key focus at the upcoming African Mining Week (AMW) Conference and Exhibition – The Most Influential Mining Conference in Africa, scheduled for October 14-16 in Cape Town. The event will connect global investors and geophysical technology providers with African regulators and project developers, facilitating strategic collaborations aimed at unlocking greenfield developments.

The theme for AMW 2026 – Mining the Future: Unearthing Africa’s Full Mineral Value Chain – reflects a growing trend among African mining jurisdictions eager to unlock the continent’s $8.5 trillion worth of untapped mineral potential. This is backed by the launch of national geomapping initiatives, aimed at identifying new exploration frontiers and supporting investments.

Recent examples include Burundi’s mid-March partnership with U.S. companies Lifezone Metals and KoBold Metals to assess the Musongati Nickel project and other critical mineral prospects. The Democratic Republic of Congo has also engaged Xcalibur Smart Mapping to survey an area spanning 700,000 square kilometers as part of a strategy to unlock over $24 trillion in untapped mineral reserves, with 90% of its geology yet to be explored.

Zambia has also completed 55% of its national geomapping project, as the country seeks to identify new copper deposits to meet its 2031 target of increasing output to three million tons. Meanwhile, Nigeria is advancing its own geomapping efforts following approval of a N1 trillion budget for 2026, aimed at unlocking the country’s potential in more than 44 critical minerals. Several other countries, including Tanzania, are also implementing similar initiatives, while South Africa is providing technical support to nations such as Gabon, South Sudan and Nigeria.

Liberia has plans to geomap 80% of its largely unexplored geology. In an exclusive interview ahead of AMW 2026, Matenokay Tingban, Liberia’s Minister of Mines and Energy, told organizers that “we are seeking geomapping and exploration partners. With Liberia’s vast but largely untapped mineral resources, access to geoscientific data will allow us to negotiate stronger investment deals and unlock downstream infrastructure development.”

The surge in geomapping initiatives highlights Africa’s commitment to unlocking its mining sector growth and presents lucrative opportunities for global exploration, drilling and geophysical technology providers. AMW 2026 will showcase ongoing geomapping progress, connecting African stakeholders with global partners to foster partnerships that will drive the expansion of Africa’s drilling and greenfield projects.

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

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African Petroleum Producers Organization (APPO) Pushes Regional Energy Hubs to Unlock Africa-Wide Investment Scale

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APPO’s Secretary General outlines integration strategy, gas potential and financing tools reshaping Africa’s energy investment landscape at IAE 2026

PARIS, France, April 24, 2026/APO Group/ –The African Petroleum Producers Organization (APPO) is promoting the development of regional energy hubs across the continent, aiming to remove trade barriers and strengthen infrastructure interconnections – from pipelines to refining and distribution networks.

 

Speaking at Invest in African Energy (IAE) 2026 in Paris, Farid Ghezali, Secretary General, APPO, said the initiative is central to repositioning Africa in the global energy system. The strategy signals a structural shift for investors: away from fragmented national markets toward a unified, high-growth regional bloc of 1.4 billion people.

“For investors, this changes everything,” Ghezali said. “You are no longer investing in isolated national markets, but in an integrated regional market with scale, demand growth and long-term potential.”

We need long-term partnerships that justify large-scale investments and create stability for both producers and buyers

Ghazali framed the push for integration as a response to a rapidly shifting global energy landscape marked by volatility and geopolitical uncertainty. “Recent events have shown that energy security is not just about supply – it is about reliability and resilience,” Ghazali noted. “The world is looking for diversification and stability,” he said. “Africa can offer both – but only if we organize ourselves as a connected and competitive energy market.”

A key part of APPO’s vision is addressing the continent’s infrastructure gap. Despite holding more than 600 trillion cubic feet of proven gas reserves, Africa continues to face constraints in monetizing its resources. “Resources in the ground are not enough,” Ghezali noted. “We need pipelines, LNG facilities, processing infrastructure – real assets that connect supply to demand.”

He emphasized that Africa must move beyond short-term, transactional energy deals, particularly in its engagement with Europe. “We cannot remain in the logic of short-term transactions,” he said. “We need long-term partnerships that justify large-scale investments and create stability for both producers and buyers.”

Financing remains a hurdle, especially as traditional capital sources become more cautious under ESG pressures. However, short-cycle exploration, near-field developments and optimization of existing assets offer immediate value, as recent successes in Namibia, MSGBC countries and Ivory Coast have shown. To support more projects, APPO has backed the creation of the African Energy Bank. At the same time, investors’ preferences are shifting toward integrated energy projects that combine upstream development with domestic power generation or LPG production. “The most attractive projects today are those that deliver both financial returns and development impact,” Ghazali said. “Gas-to-power projects respond to both energy security and sustainability.”

Ghazali underscored the need to boost intra-African energy trade. “We produce oil and gas, yet we import refined products,” he said. “This must change. Regional integration is the only path to a competitive and self-sufficient energy market.”

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

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