Mineral and Petroleum Resources Minister Gwede Mantashe says developing the country’s gas and oil potential could be a game changer for economic growth.
“The South African government wants accelerated oil exploration in the country’s waters, we believe developing the country’s oil and gas resources could boost the country’s economic growth rate to 5% and possibly 8%.
“Government took a decision to rationalise some of our State-owned Entities [SOEs] to form the South African National Petroleum Company [SANPC]. The SANPC is a strategic intervention by government to create a State-owned national company to actively pursue oil and gas projects,” the Minister said in his speaking notes at the 4th Annual Southern Africa Oil and Gas (SAOG) Conference in Cape Town on Wednesday.
Exploration has found that South Africa’s coastal and adjoining waters hold approximately nine billion barrels of oil and a further 11 billion barrels oil equivalent of natural gas, although there remains uncertainty about the extent.
Mantashe noted that considering increasing demand for natural gas, “government has moved with speed to finalise the Gas Master Plan to achieve a stable and growing economy”.
“The Gas Master Plan is designed to complement existing energy policies and contribute to an integrated energy planning approach for the country as outlined in the updated Integrated Resources Plan. It provides a framework for the role of natural gas in the energy mix and gives policy direction to industry.
“Its objective is to ensure that government is able to diversify supply options from local and international markets. Furthermore, to facilitate the development an efficient, competitive and responsive energy infrastructure network, such as gas storage facilities, liquefied natural gas import facilities, pipeline networks and regasification plants.
“Through this, the Plan would also enhance localisation, create jobs and enable inclusive economic growth,” Mantashe said.
He noted that the European bloc of nations is looking to Africa to “diversify its gas supplies”.
“While this presents an opportunity to earn foreign revenue, we should ensure that we do not export our gas at the expense of domestic and regional markets. It is imperative for SADC [Southern African Development Community] countries to be resolute in their efforts to unlock oil and gas exploration and development.
“This further presents SADC countries with an opportunity to determine conditions that will alleviate global oil and gas prices by developing their own resources.
“There must be a concerted effort among African nations to ensure that the oil and gas sector grows and thrives through investments in the upstream development for the economic prosperity of our nations,” he said. – SAnews.gov.za
