News

South Africa is seeking to unlock its gas potential and attract investment, with majors like ExxonMobil actively exploring opportunities. Speaking at African Energy Week 2025, Shahrukh Mirza, Vice President of LNG Development at ExxonMobil, said the company views South Africa as a top LNG destination. Its studies indicate the country will need “around 6-7 GW of new combined-cycle gas-fired power generation” as coal plants are retired and renewable capacity grows, positioning LNG as a key balancing solution.

At the “Invest in South Africa” roundtable, leaders highlighted energy security, strategic partnerships and regulatory clarity as key priorities. The session was sponsored by the South African National Petroleum Company (SANPC), which is building an integrated approach across the energy value chain, with gas emerging as a central focus.

SANPC CEO Godfrey Moagi stressed the need for regional collaboration, noting that “oil and gas have no borders. We need to look at Africa as a whole.” He added that the company is focused on creating partnerships across upstream and downstream operations while preparing for a transition to cleaner energy.

Exploration opportunities remain a top priority. Gil Holzman, President and CEO of Eco Atlantic Oil & Gas, highlighted the Orange Basin’s shallow-water gas and deepwater oil potential, pointing to Namibia’s recent exploration successes as a blueprint. “In order for South Africa to benefit from its rich resources, you need to enable international investors and oil and gas exploration companies to explore,” he said. “If you’re unable to explore, eventually the money goes elsewhere.”

For first movers, the rewards – and challenges – are significant. Stefano Marani, CEO of Renergen, described leading South Africa’s first commercial LNG facility as a “pain of pioneering” but said momentum is building. “There is an overall desire to get the country going in the right direction,” he said, adding that alignment between legislation and industry initiatives will be key to scaling up projects.

Financial and institutional support is also being strengthened. Dr. Tshepo Mokoka, Group CEO of the Central Energy Fund (CEF), described recent second-round funding for SANPC and outlined CEF’s evolving role in “promoting and incubating” projects across upstream, midstream and downstream sectors.

Regulators and policy experts highlighted the importance of transparency and inclusion. Tseliso Maqubela, DDG of Mineral and Petroleum Regulation at the Department of Mineral & Petroleum Resources, noted that South Africa has a strong regulatory framework and remained “bullish” about the country’s oil and gas potential, while emphasizing the need for greater public consultation, particularly in upstream exploration.

Nelisiwe Nhlapo, representing the G20 Energy Transitions Working Group and South African National Energy Development Institute, framed the discussion within the context of a just energy transition, urging initiatives that open markets while safeguarding energy security and ensuring equitable access.