AfrOil: GasCo set to stabilise natural gas supply for South African industry

The Industrial Gas Users Association of Southern Africa (IGUA-SA) has issued a stark warning about South Africa’s natural gas reserves, which could be depleted by 2026. To ensure continued gas supply, IGUA-SA has established the externally funded aggregator company GasCo, Independent Online (IOL) reported on July 12.

Gas aggregators are usually state-owned or state-operated entities (SOEs). However, owing to the lack of a state-coordinated mechanism in South Africa, the industry has been prompted to establish this model privately and on a non-profit basis.

For over a decade, the South African gas industry has heavily relied on the natural and methane-rich gas supplied by Sasol, a global integrated chemical and energy company.

In August 2023, the NYSE- and JSE-listed Sasol announced that it would cease gas supply to industrial areas and consumers by June 2026. This decision will significantly impact South African industries that operate using natural gas, writes IOL.

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