South Africa is seeking to secure a 10-year liquefied natural gas (LNG) import agreement with the United States as part of efforts to avert a looming gas shortage and reshape its trade terms with the Trump administration, according to a statement from the government’s spokesperson.
The proposal, made by President Cyril Ramaphosa during a recent visit to the White House, involves importing between 75 to 100 million cubic metres of LNG annually from the U.S.
The deal would “unlock approximately $900 million to $1.2 billion in trade per annum and between $9 billion – $12 billion for 10 years based on applicable price,” said Khumbudzo Ntshavheni, South Africa’s Minister in the Presidency and a member of the delegation that visited the U.S.
The United States, currently the world’s largest natural gas producer and leading LNG exporter, is seen as a strategic partner in South Africa’s plan to diversify its gas supply sources.
Ntshavheni emphasized that the proposed LNG deal “will not replace South Africa’s current gas suppliers but complement them.”
South Africa presently relies heavily on natural gas piped from Mozambique, but the key reserve fueling that supply is projected to start declining by the end of the decade.
Meanwhile, Mozambique’s major $20 billion LNG project, developed by TotalEnergies and backed by the U.S. Eximbank, continues to face delays, raising concerns over long-term supply stability.
According to South Africa’s cabinet spokesperson, the potential LNG import agreement could help the country avert a future energy crunch.
She also noted that South Africa plans to explore cooperation with the U.S. in advanced gas technologies, including fracking, to help unlock its own domestic gas potential.
The Karoo region, which holds significant shale gas reserves, remains off-limits for now due to a ban on exploration driven by environmental concerns.
In addition to the LNG arrangement, South Africa has proposed a broader trade package to Washington.
The country is seeking duty-free access for several key exports, including up to 40,000 vehicles, 385 million kilograms of steel, and 132 million kilograms of aluminium annually to the U.S. market.