Admin I Tuesday, October 28, 2025
JOHANNESBURG – South Africa has ended its long-standing moratorium on shale gas exploration, a move the African Energy Chamber (AEC) has lauded as a “crucial step” towards securing domestic energy supply and diversifying the national energy mix.
The decision, which follows more than a decade of regulatory uncertainty, positions the vast Karoo Basin—estimated to hold up to 200 trillion cubic feet of technically recoverable gas—to potentially transform from a geological prospect into a major production hub.
A Shift from Imports to Self-Sufficiency
For years, South Africa’s gas strategy has been heavily constrained by limited domestic supply, leaving it reliant on imports, primarily via the ROMPCO pipeline from Mozambique.
The lifting of the moratorium offers a pathway to self-sufficiency, aligning with the country’s Integrated Resource Plan and the AEC’s goal of fostering a stronger, self-sustaining African gas economy.
The AEC highlights a key advantage of onshore development: the proximity of the Karoo Basin to major industrial and power generation hubs. By harnessing shale gas domestically, the country aims to stabilize its power system, provide essential feedstock to local industries, and catalyze significant job creation across the energy value chain.
The Chamber also emphasizes that developing these onshore resources can accelerate the expansion of the liquefied petroleum gas (LPG) market. LPG offers a cleaner, more affordable alternative for residential use, potentially reducing reliance on biomass and heavy fuels and delivering tangible benefits to households and small businesses.
Lessons from the U.S. Shale Revolution
Industry observers are pointing to the U.S. experience as an instructive roadmap. The United States leveraged a combination of technological innovation—specifically hydraulic fracturing and horizontal drilling—clear property rights, and regulatory alignment to evolve from an energy importer to the world’s largest producer of oil and gas in just over a decade.
”The United States didn’t wait for perfect conditions to unleash its shale revolution—it acted,” said NJ Ayuk, Executive Chairman of the AEC. “Lifting this moratorium is not just a regulatory step; it’s a statement of intent that South Africans are ready to power their own future.”
Focus on Responsible Development
Crucially, the AEC stresses that the path forward must prioritize environmental and social considerations. The Karoo Basin is recognized as a geologically and ecologically sensitive area, and responsible development must be guided by transparency and robust regulation.
While acknowledging the environmental risks, the Chamber believes that modern standards and oversight, as demonstrated by global examples, can allow technological innovation and transformative energy outcomes to coexist with environmental stewardship.
According to the AEC’s State of African Energy 2026 Outlook, Africa’s energy transition will depend significantly on the responsible development of diverse onshore resources, including shale.
The immediate challenge for South Africa is to translate this regulatory change into tangible economic benefit. The AEC is urging swift action to finalize environmental guidelines, streamline permitting, and secure the investment and expertise needed to realize the Karoo’s long-term potential.
