Chemical Industry News, Data & Insights

Sasol Develops Methane Rich Gas Solution for South Africa's Post-2028 Gas Supply

Key highlights
  • Sasol plans to supply Methane Rich Gas from Secunda from July 2028 to June 2030.
  • The MRG solution requires regulatory approval from NERSA for the Maximum Gas Price.
  • Sasol is discussing infrastructure compatibility and volume needs with customers.
  • LNG strategy development continues with multiple terminal options under review.

MRG Supply Solution

Sasol is advancing a Methane Rich Gas (MRG) supply solution to address the anticipated gas supply gap in South Africa as natural gas production from Mozambique declines. The company plans to supply MRG from its Secunda operations to external customers from July 2028 to June 2030.

Regulatory Approval

The implementation of the MRG solution is contingent on regulatory approval from the National Energy Regulator of South Africa (NERSA) for Sasol Gas's Maximum Gas Price (MGP) application. The MGP will reflect the cost of acquiring MRG and will be determined according to NERSA's pricing methodology.

Customer Engagement

Sasol is actively engaging with customers to discuss the proposed MRG solution, assess infrastructure compatibility, and confirm volume requirements. These discussions will inform the final investment decision for necessary modifications to enable MRG supply.

LNG Strategy

In parallel, Sasol continues to develop its Liquefied Natural Gas (LNG) strategy, considering multiple terminal options to meet long-term gas demand in both inland and coastal regions.