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South Africa’s gas industry is calling for a more centralised state role in planning, financing and co-ordinating gas infrastructure, arguing that market forces alone will not deliver the investment needed to avoid a looming supply shortfall and expand the country’s gas economy.The call forms part of an updated Gas Roadmap for South Africa (2025–42) released by the Industrial Gas Users Association of South Africa (IGUA-SA), which outlines a co-ordinated national framework involving the presidency, National Treasury, Eskom, Sasol and private-sector gas aggregators.The roadmap comes amid growing concern over South Africa’s approaching “gas cliff” as existing gas supply from Mozambique’s Pande-Temane fields is expected to decline sharply after 2028.Industry bodies have repeatedly warned that while government policy increasingly positions gas as part of South Africa’s future energy mix, the country still lacks a clear execution framework to secure long-term supply and infrastructure investment.National Gas Task TeamAt the centre of IGUA-SA’s proposals is the establishment of a presidency-led National Gas Task Team to co-ordinate planning and execution across the department of electricity & energy, the National Treasury, Eskom and other state entities.The roadmap also proposes co-ordinated demand planning between Eskom, Sasol and industrial users to create what the industry describes as a “bankable demand stack” capable of supporting large-scale liquefied natural gas (LNG) infrastructure.The document argues that fragmented industrial demand makes it difficult to secure long-term supply agreements and finance import infrastructure. Therefore, aggregating demand from power generation, petrochemicals and industrial users will provide suppliers and financiers with long-term certainty over gas volumes.The Integrated Resource Plan 2025 projects gas could account for about 11% of electricity generation by 2039, with about 6,000MW of gas-to-power capacity expected by 2030. However, industry groups have questioned whether infrastructure, procurement systems and supply planning are moving fast enough to support those targets.IGUA-SA proposals point toward a more developmental-state approach to gas infrastructure planning, with the government playing a central role in co-ordinating demand, underwriting risk and sequencing investment.Supporters argue this is necessary to unlock infrastructure investment, particularly in LNG gas import terminals and pipeline networks that require large upfront capital commitments and long-term contracts.Critics, however, warn that stronger state co-ordination could increase fiscal exposure, reduce competition and concentrate decision-making power around a smaller group of state-backed institutions and market participants.The roadmap also proposes accelerated regulatory alignment, dedicated gas infrastructure corridors and specialist mechanisms to reduce legal delays linked to energy projects.With the Gas Master Plan still incomplete and major LNG infrastructure projects yet to reach final investment decisions, the industry is increasing pressure on the government to shift from policy discussion to co-ordinated execution.Business Day
