“South African industrial gas users directly employ ±70,000 people and contribute between R300 billion and R500 billion annually to the South African economy. A cessation in the gas supply will result in multiple plant closures and a significant reduction in manufacturing output across KwaZulu-Natal, Gauteng, and Mpumalanga.”
Thomas Shaw 2024 Annual Report IGUA-SA
The IGUA-SA 2024 report comes at a critical juncture in South Africa’s energy landscape, as the country faces a gas cliff that will suspend gas supply to large industrial gas consumers from June 2026 onwards. Several key manufacturers, supporting tens of thousands of jobs, are deeply reliant on gas energy for their continued operations. These industries span multiple economic sectors, including chemicals, steel, glass, food and beverages, in Gauteng, Free State, KwaZulu-Natal, and Mpumalanga. South African industrial gas users directly employ South African industrial gas users directly employ ±70,000 people and contribute between R300 billion and R500 billion annually to the South African economy. A cessation in the gas supply will result in multiple plant closures and a significant reduction in manufacturing output across KwaZulu-Natal, Gauteng, and Mpumalanga.
Gas-energy security is crucial for South African economic development. The unilateral decision by Sasol in August 2023 to cut off gas supply from June 2026 poses an existential risk to large industrial gas users and is likely to lead to the deindustrialisation of the South African economy. Many industries have already been forced to halt investment and growth plans due to the risk of a gas-energy shortage. There are no confirmed supply solutions that will come online early enough to serve as a sufficient independent supply source, raising the prospect of devastating consequences for the economy and jobs. As it stands, there is a 12- to 18-month gap between day zero, when Sasol’s supply is suspended, and the finalisation of any feasible replacement supply.
Accordingly, there is a critical period during which energy supply will be unable to support South African manufacturing activity. Since it is not feasible for the industry to singlehandedly invest in and develop national-scale private naturalgas infrastructure (including bulk pipelines, LNG port terminals, and regasification terminals), urgent action is required on the part of the South African Government to adequately address this crisis. Despite active engagement, the government has not yet provided practical and implementable solutions.
Feedstock for Continuous Pyrolysis is derived from Plastic, MSW, Tyres, Biomass and Coal Dust (Duff). Roarr Energy (Pty) Ltd is at the forefront of addressing the gas challenge and the supply of sustainable energy. They are already in consultation with some of the major stakeholders and still has capacity to accommodate more before the gas cliff catastrophe is reached. We have the most superior technology in the world without any emissions which makes this clean energy. We can generate syngas that is engine ready and can link into existing systems for heating or even electricity manufacturing.
Contact Dr. Sjoerd Alkema on 079 839 7991 or on This email address is being protected from spambots. You need JavaScript enabled to view it.
