Gas crisis ahead: Government’s Master Plan offers no solution

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The draft Gas Master Plan is a policy instrument to ensure security of gas supply by diversifying local and international supply options.

The Gas Master Plan that Minister of Mineral Resources and Energy Gwede Mantashe published last week, offers no solution for the impending gas shortage that is expected to hit the country in 2026.The plan considers the complete gas topology ranging from demand, supply, importation, infrastructure and distribution networks.

“This is a crisis for businesses that collectively employ 70 000 people and generate R500 billion a year for the economy.” “The plan has security of supply as a core objective and models the impending day zero in its analysis of existing gas sources, but then does not set out a clear plan to deal with it.

Mavuso says the fact that it does not, leave one feeling that the department is simply not taking the looming crisis seriously enough. Mavuso says that plan failed to apply the least-cost principle, spuriously elevating the price of renewable energy relative to fossil fuels. “The department must demonstrate it is committed to getting policy right and willing to engage with those affected and take their input seriously. The Gas Master Plan is an opportunity to do so.”Jaco Human, CEO of the Industrial Gas Users Association of Southern Africa, toldthat the association relayed the importance of the master plan addressing the critical issues around the ‘Day Zero’ for gas.

 

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