Gas Amendment Bill — LNG Import Infrastructure and City Gas
Theme: Gas sector development
Reform at a glance
- What changes
- Gas Amendment Bill — LNG Import Infrastructure and City Gas
- Responsible actor (recorded)
- Department of Mineral Resources and Energy / NERSA / Transnet / National Ports Authority
- Recorded status
- Partially implemented — editorial assessment.
- Milestone described by this status
- Status scope has not yet been independently documented; it may cover only part of this reform.
- Next documented milestone
- Next milestone not yet documented
On this page
Description
The Gas Amendment Bill (2024) updates South Africa's Gas Act to facilitate LNG importation, establish a licensing framework for gas import terminals, and enable city gas distribution networks. South Africa currently imports LNG on a spot basis through the Gravity floating storage regasification unit (FSRU) at Richards Bay, but lacks a permanent LNG import infrastructure framework. The Coega LNG terminal in the Eastern Cape and a Richards Bay permanent facility are in various stages of development. Gas plays a transition role as a dispatchable complement to intermittent renewables, and as feedstock for industrial processes currently dependent on Sasol's gas network. The Bill also provides for virtual gas pipelines (road and rail transport of compressed or liquefied gas). As of early 2026, the Bill has passed Parliament and awaits Presidential assent; secondary licensing regulations are under NERSA development.
Assessment
Responsible: Department of Mineral Resources and Energy / NERSA / Transnet / National Ports Authority
Feasibility Assessment
High: Bill passed 2024. Implementation requires LNG terminal investment decisions and NERSANERSA — National Energy Regulator of South Africa: The regulatory authority for the electricity, piped-gas, and petroleum pipelines industries in South Africa. NERSA approves Eskom's tariff applications and licenses new electricity generators. tariff methodology. GIPPP procurement can proceed. Supply diversification reduces Sasol dependence.
Where the numbers stand
All indicators →- Eskom Energy Availability Factor72%2025
+7 pp from 65% in 2020. Eskom Integrated Reports (Eskom IR)
- Load Shedding (Electricity Shed)0 GWh2025
−1798 GWh from 1798 GWh in 2020. CSIR / Eskom (CSIR Energy)
Next official read on this: Mining: production and sales, August 2026 — due 13 October 2026 (Stats SA schedule).
Series tagged to this idea’s binding constraint. The period beside each value is the latest observation this site holds, which can lag the official release: the series are rebuilt offline from the sources named, not read live.
Stakeholder Landscape
Who backs this reform, who needs convincing, and which interests or red lines shape political feasibility.
Backers
7
1 stakeholder
Negotiation weight
0
0 conditional actors
Opposition weight
0
0 opposing actors
Coalition Read
AI-drafted stances · 0 reviewed
A coalition score needs at least 3 mapped stances, or actors carrying 25% of the map's influence. The stances below are the evidence; the average over this few of them would not be.
Anchor: NERSA.
Political Tractability
No reviewed signals · 0% of mapped influence has been reviewed.
LNG import infrastructure falls within NERSA's gas regulatory jurisdiction and expands its mandate.
Interest: Statutory mandate as National Energy Regulator: licensing, tariff regulation for electricity, gas, and petroleum pipelines; consumer price protection…
Concern: Reform proposals that bypass NERSA licensing (e.g. registration-only frameworks for embedded generation) reduce statutory jurisdiction and create regu…
Engagement path: Regulatory reform must strengthen rather than hollow out NERSA's capacity; adequate resources and staff to handle an expanded regulatory workload unde…
Referenced in OECD Economic Surveys: South Africa
OECD SA Survey (2017, 2020, 2022, 2025). The 2025 survey calls for boosting public investment especially in electricity, water and rail.
The Gas Amendment Bill is not about gas — it is about giving SA the flexible generation it needs to make a renewable energy future work. — DMRE, PC on Energy 2023
Implementation Roadmap
South Africa faces a looming industrial gas shortage as the Mozambican ROMPCO pipeline supply is constrained and domestic Sasol gas fields deplete. The Gas Amendment Bill updates the Gas Act 2001 framework for LNG imports, enables LNG terminal licensing at Richards Bay, Coega, and Saldanha Bay, and creates a city gas distribution licensing regime to develop piped gas networks in urban areas. LNG import infrastructure is the bridge fuel for industrial decarbonisation and the gas-to-power programme; city gas networks reduce residential electricity demand by providing an alternative to electric geysers and cooking in medium-density urban areas. DMRE and NERSA co-lead the regulatory framework development, with the DMRE's Gas Master Plan providing the demand basis.
Table the Gas Amendment Bill in Parliament: key provisions include LNG terminal licensing under NERSA, open-access regasification infrastructure obligations, city gas distribution licensing, and transition from ROMPCO-dominant supply to a diversified import-plus-domestic model
NERSA publish the LNG Terminal Licensing Framework: technical requirements, safety standards (NRCS), open-access pricing methodology, and EIA integration with DFFE
Facilitate competing LNG terminal feasibility studies at three candidate sites (Richards Bay, Coega, Saldanha Bay): DMRE data room access, NRCS pre-qualification, Transnet Pipelines and iGas pipeline connection assessments
Issue city gas distribution licences in 5 pilot cities (Johannesburg, Cape Town, Durban, Ekurhuleni, Tshwane): NERSA to tender 20-year exclusive city gas distribution concessions
Develop the Gas Master Plan update integrating LNG import scenarios, domestic offshore gas production timelines (Brulpadda/Luiperd), and city gas demand projections through 2040
Conclude bilateral LNG supply framework agreements with QatarEnergy, US LNG exporters (Venture Global, Sabine Pass), and ENH Mozambique for competitive long-term supply
Gas Amendment Bill enacted Q1 2026; LNG licensing framework Q2 2026; first terminal FID 2027–2028; city gas pilot licences Q4 2027; LNG first gas 2028–2030
LNG terminal infrastructure: R8–15 billion per terminal (private sector funded, potential sovereign guarantee). City gas network development: R2–4 billion per major metro (private sector concession). DMRE and NERSA regulatory capacity: R100 million over 2 years.
Gas Amendment Bill (new primary legislation): amends the Gas Act 48 of 2001 to add LNG-specific licensing provisions, open-access obligations for LNG terminals, and city gas distribution licensing. NRCS Act and OHSA regulations require updating for LNG safety standards.
Gas sector reform has strong industry support (Sasol, industrial gas users, EIUG). Petrochemical industries facing supply shortfalls are vocal proponents. ANC Economic Transformation Committee supports LNG as a transition fuel. Environmental NGOs oppose LNG expansion as inconsistent with the Paris Agreement; DFFE must manage the climate impact assessment process.
Brazil's city gas concession model (25-year exclusive licences, regulated tariffs) has successfully built piped gas networks in São Paulo, Rio, and 11 other cities — directly applicable. Chile's LNG import terminal at Quintero (2009) demonstrates a medium-sized economy's successful LNG infrastructure development. Qatar LNG supply agreements with South Korea and Japan provide the template for SA's long-term supply contracting.
Evidence & Research
No linked research evidence yet. Coverage is incomplete.
Policy documents
No linked official-document evidence yet. Coverage is incomplete.
Parliamentary record
3 meetingsCommittee sittings this reform was drawn from, most recent first. Each row opens the meeting on this site; the PMG link goes to the source record.
Mineral Resources
23 August 2023UPRD Bill: outstanding matters
Mineral Resources
13 October 2022Briefing on 2021/2022 Annual Report: NECSA, CEF, CGS, SANEDI, NNR and NRWDI
Mineral Resources
15 February 2022DMRE Quarter 1, 2 & 3 2020/21 Performance & Implementation of Audit Improvement Plans; with Minister and Deputy Minister
Get the Monday briefing by email
— A short weekly digest of what moved in SA policy.How to cite
Wilse-Samson, L. (n.d.). Gas Amendment Bill — LNG Import Infrastructure and City Gas. SA Policy Space. https://sa-policy-space.vercel.app/ideas/gas-amendment-bill-lng-import-infrastructure-and-city-gas Live page. Data version: 2026-10-10.d2e346d2; data as of: 2026-10-10.
Status History
tracked since Mar 2026- Recorded as Partially implemented when status tracking began — held since at least Mar 2026.Mar 2026
Data as of 2026-10-10 · latest PMG meeting 2026-10-02