South Africa’s biggest industrial gas users have formed a new company to pool demand ahead of an expected sharp drop in supply from Sasol’s Mozambique gas fields by 2028.
Nearly two dozen firms have joined the nonprofit GasHub, which aims to aggregate demand and create the scale needed to attract global LNG suppliers and infrastructure investors, the group said Wednesday.
“By aggregating demand across multiple industrial users, GasHub creates the market scale necessary to secure favourable long-term supply agreements,” the consortium said.
South Africa, which relies heavily on gas from Mozambique and has no significant domestic supply, plans to use the fuel to help fill its power deficit as ageing coal plants retire. Several LNG import terminals are being pursued to feed gas into the existing pipeline network.
TotalEnergies has yet to take a final investment decision on its planned Matola LNG terminal in Mozambique, which could link to the Rompco pipeline supplying South Africa. Mozambique last week approved concessions for two LNG import projects at Beira and Inhassoro, while Total and Exxon are advancing major LNG developments in the country’s north.
Sasol and Eskom have also agreed to explore options for gas aggregation.
“South African industrial users of gas face both a short-term crisis and long-term opportunity if regional LNG access can be secured,” said GasHub chairman Thomas Shaw.
