Good news for South Africa’s gas crisis

South Africa’s industrial gas users are planning to form a company to ensure supply after the sole provider of the fuel announced it will halt the flow in 2026.

Sasol, which has provided gas to customers through the 865 km Rompco pipeline from its fields in Mozambique, has said it will stop the supply in two years.

The Industrial Gas Users Association of Southern Africa, a lobby group with members including Arcelor Mittal SA and Coca-Cola, has warned that without fuel supply, companies will have to fire workers and shut businesses. 

“A non-exclusive joint venture agreement is being concluded with approximately 30 large and small users of piped gas in South Africa,” the group said in a statement.

It’s planning an externally funded, private company based on a cost-pass-through model.

A feasibility study outlining the proposed company’s legal, regulatory, economic, and operational viability has been concluded. 

“Constructive discussions continue with Sasol and international oil companies, gas infrastructure developers and operators to ensure continued gas supply beyond 2026,” the group said.