Connect with us
Anglostratits

Energy

South Africa’s Cheaper Petrol Masks a Looming Gas Gap – and a Critical Investment Opportunity

Published

8 months ago

on

African Energy Chamber

A stronger rand and softer global fuel prices have pushed South African petrol to a four-year low – but without domestic gas development and LNG infrastructure, the country remains exposed to imports, currency swings and a fast-approaching supply shortfall

CAPE TOWN, South Africa, February 10, 2026/APO Group/ –South Africans are once again seeing relief at the pump, with the latest fuel price cuts delivering the cheapest petrol in roughly four years. The reductions – around 65 cents per liter for petrol and more than 50 cents for diesel – continue a downward trend that began earlier in 2026, when falling crude prices and currency strength combined to lower pump prices nationwide.

While the immediate benefits are tangible – cheaper transport, easing inflationary pressure and support for businesses – the underlying drivers reveal a more fragile reality. South Africa’s fuel costs remain shaped primarily by global oil markets and exchange-rate movements rather than domestic energy resilience.

Currency dynamics are particularly influential. The rand strengthened sharply through 2025, gaining nearly 13% against the U.S. dollar – its best annual performance in more than a decade – supported by improved fiscal sentiment and rising commodity prices. This momentum has continued into 2026 with periodic surges in precious-metal prices and global risk appetite. These shifts can lower refined-fuel import costs, but they also highlight South Africa’s continued dependence on external forces.

Structural weaknesses across the country’s fuel supply chain reinforce this reliance. Refining capacity has declined significantly, leaving only a handful of operational crude refineries and forcing South Africa to import roughly three-quarters of its liquid fuel needs. Strategic reserves remain limited to less than a month of supply. In this context, price relief at the pump reflects favorable global conditions rather than meaningful progress toward energy self-sufficiency.

Natural gas – affordable, reliable and abundant across Africa – can transform economies by powering industry, creating jobs and delivering the energy security our people deserve

The longer-term risk becomes clearer when viewed alongside South Africa’s evolving gas outlook. Without new domestic production or import capacity, South Africa is projected to face a ‘gas cliff’ as early as 2026. Existing Mozambican pipeline gas is depleting, while interim extensions from Sasol serve only as a temporary bridge to future LNG imports. Without new domestic production, import terminals or pipeline expansion, the country could confront tightening supply just as demand for flexible, lower-carbon power grows.

“Natural gas – affordable, reliable and abundant across Africa – can transform economies by powering industry, creating jobs and delivering the energy security our people deserve,” states NJ Ayuk, Executive Chairman of the African Energy Chamber. “But this transformation requires urgent investment in domestic production, LNG infrastructure and regional partnerships. South Africa has the resources and the market demand; what matters now is turning opportunity into action.”

Recognizing this urgency, the government is fast-tracking LNG import infrastructure, including a floating storage and regasification unit in Mozambique expected by mid-2026 and a planned LNG terminal at Richards Bay targeted for 2027, alongside efforts to unlock offshore gas in the Orange Basin. Today, roughly 90% of South Africa’s natural gas is still imported via a single pipeline from Mozambique – an exposure that underscores the need for diversification and domestic development.

The regional context reinforces the opportunity. Major LNG projects such as Mozambique’s $20 billion development – now moving forward again with production targeted before the end of the decade – signal growing momentum for African gas as a pillar of energy security and industrial growth. For South Africa, connecting to this wave through infrastructure, investment and regulatory clarity could reduce currency risk, stabilize fuel costs and support a more resilient transition pathway.

African Energy Week (AEW) 2026 in Cape Town is expected to spotlight precisely this: energy security, infrastructure investment and pragmatic transition pathways that balance hydrocarbons with emerging low-carbon systems. The event serves as a continental platform for LNG financing, infrastructure partnerships and upstream gas development capable of closing supply gaps and accelerating practical energy transitions.

Fuel price volatility now exposes South Africa’s structural energy weaknesses, underscoring why short-term relief cannot substitute for long-term strategy. Cheaper petrol may ease pressure today, but without decisive progress on domestic gas production and LNG infrastructure, the country risks repeating the same cycle – relief when currencies strengthen, strain when they weaken and continued vulnerability in between.

Distributed by APO Group on behalf of African Energy Chamber.

Related Topics:
Continue Reading
Advertisement

Business

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

Published

3 days ago

on

October 9, 2026

By

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.

 

 




 

Continue Reading

Business

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

Published

3 days ago

on

October 9, 2026

By

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.

 




 

Continue Reading

Energy

Nigeria Mining Week 2026 sets the agenda for the sector’s next decade

Published

3 days ago

on

October 9, 2026

By

Nigeria Mining Week

International Lithium Association and Mercuria Energy Trading NG join Nigeria Mining Week 2026 ahead of its opening in Abuja on 12 October

Nigeria has the mineral endowment to play a growing role in global supply chains, including critical minerals

CAPE TOWN, South Africa, October 8, 2026/APO Group/ —Programme and delegate passes: www.NigeriaMiningWeek.com

With less than a week to go, Nigeria Mining Week 2026 has added a global commodity trader and the world’s lithium trade association to its programme. Mercuria Energy Trading NG has signed as a Gold Sponsor, and the International Lithium Association (ILiA) has joined as a Supporting Association.

 




 
 

They join Nigeria’s mining leaders, investors and operators in Abuja from 12 to 14 October for three days on the questions that will define the sector’s next decade: who finances Nigerian projects, who buys their output, and how much of it is processed in Nigeria.

Now in its 11th edition, the event takes place at the Abuja Continental Hotel under the theme “Unlocking Investment and Growth through Partnerships”. More than 3,080 attendees and more than 90 sponsors and exhibitors are expected across seven strategic forums.

The decisions made on processing, financing and market access over the next few years will shape Nigerian mining for the decade ahead. Nigeria Mining Week puts the people making those decisions in the same room.

On the agenda

The programme follows six content pillars: exploration and geological data; financing and investment; industrialisation and processing; infrastructure and power; ESG, transparency and community development; and international and regional collaboration.

  • 12 October: pre-conference and roundtables on geological data, financing for junior miners, compliance and enforcement, and power and infrastructure.

Available to conference attendees only.

  • 13 October: conference and exhibition opening, the new Critical Minerals Forum, the Women in Extractive Industries Forum and technical workshops
  • 14 October: Gold Day, sessions on steel and industrial minerals, the Deal Room and further technical workshops

The Deal Room is a curated space for one-on-one meetings between mining projects and financiers, off-takers and strategic partners. Projects seeking offtake or financing can apply to take part.

International Lithium Association joins as Supporting Association

ILiA, the global trade association for the lithium industry, will take part in the Critical Minerals Forum on 13 October. Astrid Karamira, EMEA Representative Director at ILiA, joins the panel “Building Reliable Pathways from Nigeria to Global Battery, Magnet & EV Markets”.

The session looks at what Nigerian projects must do to reach international battery markets: technical and quality standards, traceability and responsible sourcing, export readiness, and the step from exploration success to commercial operation.

“Global buyers are asking more of their suppliers on quality, traceability and responsible sourcing than ever before. Nigeria Mining Week is an opportunity to discuss openly what those expectations mean in practice, and how Nigerian projects can meet them.”

Mercuria Energy Trading NG signs as Gold Sponsor

Mercuria Energy Trading NG is the Nigerian subsidiary of Mercuria, one of the world’s leading independent energy and commodity groups. It brings a buyer and offtaker perspective to the programme.

For many Nigerian projects, a credible buyer is the gap between a promising deposit and a financed mine. Mercuria will contribute to discussions on commodity trading and offtake partnerships, critical minerals supply chains, and infrastructure and logistics.

“Nigeria has the mineral endowment to play a growing role in global supply chains, including critical minerals. We look forward to sharing how trading, offtake and logistics partnerships can help Nigerian projects reach global markets.”

Event details

The programme is subject to change.

Distributed by APO Group on behalf of Nigeria Mining Week.

 

 




 

Continue Reading

Trending