South Africa proposes importing LNG from US

ISTANBUL

South Africa has offered buying liquefied natural gas (LNG) from the US, the minister in the presidency said.

According to the outline of the proposed deal, South Africa will import 75 to 100 petajoules of LNG annually from the US for the next 10 years, generating trade worth between $900 million and $1.2 billion per year, totaling $9 billion to $12 billion over the decade, Khumbudzo Ntshavheni said on the government’s website on late Sunday.

South Africa and the US “will negotiate an arrangement to facilitate LNG imports from the US at the appropriate price. This will not replace our current suppliers of gas but complement those supplies,” she said.

Ntshavheni said this will be complemented by US investment in South Africa’s gas infrastructure, with both countries cooperating on key technologies, including fracking, to boost local gas production.

The proposed deal also includes collaboration on critical minerals investment with a joint exploration fund, duty-free quotas for 40,000 vehicles and automotive components, plus duty-free access for 385 million kilograms of steel and 132 million kilograms of aluminum annually.

“The final details of the deal will be concluded by our joint teams,” the minister added.