South Africa’s Gas Cliff: What It Means for Jobs and Industry

Why Gas Supplies Are Shrinking

The gas that powers many South African factories comes mainly from Mozambique’s Pande and Temane fields. These fields are getting older, and their output is expected to drop sharply in the next few years. The ROMPCO pipeline, which carries the gas across the border, will therefore deliver less fuel to plants in Gauteng, Mpumalanga and KwaZulu‑Natal.

Who Could Be Affected?

About 13 000 people work directly in industries that use this gas—think steel, chemicals, and manufacturing. If the supply falters, those factories might have to cut back or shut down. Experts warn that up to 70 000 jobs across the wider economy could feel the ripple effect, from suppliers to service providers.

What the Government Is Doing

Short‑Term Steps

• Keep buying gas from Mozambique through Sasol, which says it can supply until around 2030.
• Work with Mozambique’s government to extend the ROMPCO pipeline’s concession.
• Begin planning a liquefied natural gas (LNG) terminal so gas can be imported by ship if needed.

Long‑Term Plans

• Build LNG import and storage facilities at several South African ports.
• Develop domestic gas resources by supporting onshore and offshore exploration and drilling.
• Link new gas‑to‑power projects with LNG infrastructure to create a more flexible supply network.

Industry Voices

The Industrial Gas Users Association says there is only a six‑ to nine‑month window to act before the shortage becomes critical. They urge faster approvals, clearer regulations, and more investment to keep the gas flowing.

What This Means for You

If factories slow down, the prices of everyday goods could rise, and job opportunities in manufacturing might shrink. On the flip side, the push for new gas projects and LNG terminals could create fresh jobs in construction, engineering, and renewable energy.

Conclusion

South Africa’s looming “gas cliff” is a real challenge, but it’s not inevitable. By combining short‑term measures—like extending existing supplies and planning LNG imports—with long‑term investments in local gas exploration and infrastructure, the country can protect jobs, keep factories running, and secure a more stable energy future.