Chemical Industry News, Data & Insights

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

Key highlights
  • Sasol will supply Methane Rich Gas from Secunda to external customers from July 2028 to June 2030.
  • The MRG solution requires regulatory approval of Sasol Gas's Maximum Gas Price by NERSA.
  • Sasol is discussing infrastructure compatibility and volume requirements with customers.
  • Sasol is also advancing its LNG strategy with multiple terminal options for long-term demand.

MRG Supply Solution

Sasol is developing a Methane Rich Gas (MRG) supply solution to ensure gas supply continuity in South Africa from July 2028 to June 2030. This initiative addresses the anticipated supply gap due to declining natural gas production from Mozambique.

Regulatory Approval

The implementation of the MRG solution depends on the approval of Sasol Gas's Maximum Gas Price (MGP) application by the National Energy Regulator of South Africa (NERSA). The MGP will be based on the cost of acquiring MRG from Sasol South Africa and 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 is advancing its Liquefied Natural Gas (LNG) strategy, considering multiple terminal options to meet long-term gas demand in both inland and coastal regions.