South Africa intends to import US LNG as part of trade deal with US

South Africa has offered to purchase liquefied natural gas (LNG) from the US over a 10-year period as part of a trade deal, Reuters reports.

Now South Africa imports most of its gas through a pipeline from Mozambique, but could face a shortage in a few years, as supplies from the neighboring country dwindle, the news agency says.

According to the document, signed by Khumbudzo Ntshavheni, Minister in the Presidency, South Africa intends to buy about 75–100 million cubic meters of US LNG per year. Ntshavheni says it will boost annual trade between the two countries by about 0.9–1.2 billion dollars. 

The minister claims LNG imports will be coupled with US investment in South Africa’s gas infrastructure, as the nation moves away from coal-fired power plants and shifts its focus to natural gas.

The country also plans to work with the US on technology to unlock domestic production. Reuters reports that the Karoo region in South Africa may hold significant gas deposits. However, exploration in the area is currently prohibited due to environmental concerns.