SA has offered to buy liquefied natural gas (LNG) from the US over 10 years as part of proposals to secure a trade deal, according to a ministerial statement posted on the government news agency website.
The document, signed by minister in the presidency Khumbudzo Ntshavheni and posted late on Sunday, said South Africa aims to import 75-100 petajoules, roughly 75- to 100-million cubic feet*, of LNG per year from the US, the world's biggest LNG exporter.
The minister said that would "unlock approximately $900m (R16bn) to $1.2bn (R21.4bn) in trade per annum and $9bn (R161bn) to $12bn (R214.4bn) for 10 years based on applicable price".
The trade package was proposed by SA during President Cyril Ramaphosa's visit to the White House on May 21, when President Donald Trump confronted him over government policies, such as land reform and black economic empowerment, and made false claims about a "genocide" against whites.
Ramaphosa had hoped to use the meeting to reset his country's relationship with the US after Trump cancelled much-needed aid to SA, offered refugee status to white minority Afrikaners, expelled the country's ambassador and criticised its genocide court case against Israel.
Ntshavheni, a senior member of government and cabinet spokesperson, was part of the government delegation that accompanied Ramaphosa to Washington. She said SA would work with the US to explore areas of cooperation in technologies, including fracking, to help unlock gas production in SA.
The proposed package also includes a duty-free quota of 40,000 vehicles per year to be exported from SA and duty-free access for automotive components sourced from the country for production in the US.
SA proposes buying US gas as it seeks trade deal
Package also includes duty-free proposals for SA-made vehicles and auto parts
SA has offered to buy liquefied natural gas (LNG) from the US over 10 years as part of proposals to secure a trade deal, according to a ministerial statement posted on the government news agency website.
The document, signed by minister in the presidency Khumbudzo Ntshavheni and posted late on Sunday, said South Africa aims to import 75-100 petajoules, roughly 75- to 100-million cubic feet*, of LNG per year from the US, the world's biggest LNG exporter.
The minister said that would "unlock approximately $900m (R16bn) to $1.2bn (R21.4bn) in trade per annum and $9bn (R161bn) to $12bn (R214.4bn) for 10 years based on applicable price".
The trade package was proposed by SA during President Cyril Ramaphosa's visit to the White House on May 21, when President Donald Trump confronted him over government policies, such as land reform and black economic empowerment, and made false claims about a "genocide" against whites.
Ramaphosa had hoped to use the meeting to reset his country's relationship with the US after Trump cancelled much-needed aid to SA, offered refugee status to white minority Afrikaners, expelled the country's ambassador and criticised its genocide court case against Israel.
Ntshavheni, a senior member of government and cabinet spokesperson, was part of the government delegation that accompanied Ramaphosa to Washington. She said SA would work with the US to explore areas of cooperation in technologies, including fracking, to help unlock gas production in SA.
The proposed package also includes a duty-free quota of 40,000 vehicles per year to be exported from SA and duty-free access for automotive components sourced from the country for production in the US.
A duty-free quota of 385-million kg for steel per year and 132-million kg of aluminium per year was also proposed, according to the document.
The government news agency website, where the article was originally posted, was down on Monday. Its editor told Reuters the document, seen by Reuters, was posted on Sunday and added the website was down because of technical reasons.
Ntshavheni had posted a link to the document on her X account on Sunday. Her spokesperson did not immediately respond to Reuters' queries and it was not clear if the document posted was a final version. The presidency spokesperson did not reply.
Ntshavheni said LNG imports would be augmented with US investment in gas infrastructure as Africa's most advanced economy pivots towards natural gas and away from coal-fired power stations.
Trump, who unleashed global trade tensions by announcing tariffs on all his trade partners last month, has made energy one of the bargaining chips.
For SA, which imports most of its gas via a pipeline from Mozambique, and could run out of gas within a few years as its neighbour's supplies dwindle, US LNG would fill a need.
The Karoo region is thought to hold significant quantities of gas but a moratorium on shale gas exploration over environmental concerns has held up exploration in the area.
Ntshavheni said: "SA and the US will negotiate an arrangement to facilitate LNG imports from the US at the appropriate price. This will not replace our suppliers of gas but complement the supplies."
* Corrected to change conversion to cubic feet (not cubic metres)
Reuters
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