As South Africa’s energy landscape evolves, the natural gas market is facing significant supply challenges. The decline in availability from existing gas fields in Mozambique, projected to intensify between 2026 and 2028, highlights the urgent need for alternative energy sources. 

To maintain energy security for the industry, the most viable solution is the importation of liquefied natural gas (LNG), leveraging the existing pipeline infrastructure within the country. However, this transition requires careful planning, significant investment in port infrastructure, and strategic aggregation of market demand to ensure LNG’s viability.

“At SLG, we are spearheading a comprehensive strategic plan designed to secure the future of South Africa’s gas market through the adoption of LNG,”  says SLG Group CEO Mzi Tyhokolo. “With over 23 years of experience in the industry, our approach underscores a commitment to innovation, collaboration and sustainability, ensuring a robust energy future for our customers and the industry at large.”

Recognising the critical need for LNG, SLG has set an ambitious target to aggregate 100 petajoules per year of gas and secure long-term gas supply agreements (GSA/GTA) by 2026. With extensive experience as a direct importer of gas from Mozambique, SLG is well-positioned to effectively manage upstream commercial risks associated with sourcing LNG. This approach ensures a reliable and cost-effective supply, which is essential for maintaining energy security.  The strategy involves close collaboration with infrastructure owners to align demand profiles with infrastructure planning, ensuring seamless integration of LNG supply into the existing pipeline network. A key aspect of this effort is the development of LNG port infrastructure and the establishment of necessary links to the transmission network, which are crucial for ensuring uninterrupted supply and distribution.

Under its subsidiary, SL Power, the company is driving demand through the development of significant gas-to-power projects. These initiatives are not only vital for increasing gas demand but also play a critical role in South Africa’s broader energy transition. By integrating natural gas into the energy mix, SL Power supports the shift towards a low-carbon future, thereby reducing the nation’s reliance on traditional fossil fuels.  The strategic focus on gas-to-power aligns with the growing need for cleaner, more efficient energy solutions. As the demand for energy in South Africa continues to rise, SL Power’s projects will provide the necessary infrastructure to support this growth while promoting sustainability.

SLG’s commitment to the sustainability and growth of the natural gas industry in South Africa remains unwavering. With a forward-looking approach, the company is dedicated to overcoming the challenges posed by diminishing gas supplies and positioning LNG as the future of the country’s gas market. SLG’s involvement in significant industry forums and conferences, such as sponsoring plenary sessions at the African Energy Indaba 2024 and in 2025, reflects its leadership and dedication to shaping the future of energy in Southern Africa.

As SLG navigates these challenges, the strategic plan remains focused on securing long-term energy security for its customers and contributing to the nation’s broader energy objectives. The company is proud to be a leading energy partner in the region, driving the transition towards a sustainable and resilient energy future.

Join Us in Shaping the Future of Energy

SLG is committed to leading the transition to LNG and supporting the broader energy transition in South Africa. To learn more about our LNG and gas-to-power initiatives or to explore potential partnerships, contact us today on 031 8120 555; www.slgas.co.za