By Joseph Maluleke
At precisely 03:00 AM on February 23, 2025, I was jolted awake—not by the hum of a city in motion, but by the deafening silence of yet another load-shedding blackout. In that moment, lying in the dark saved by the backup power solution I invested in due to this very loadshedding, I could not help but reflect on how South Africa’s energy crisis has become a permanent and deeply entrenched national emergency. We are not simply battling power shortages; we are trapped in an energy stranglehold, which, if left unresolved, will throttle economic growth, drive investment away, and deepen our industrial decline.
Despite policy discussions, roadmaps, and regulatory promises, the reality remains unchanged: Eskom’s failures continue, the grid is fragile, and businesses and households are forced to shoulder the burden. This is why we must move beyond political hesitation and bureaucratic inertia—we need bold, decisive action, and we need it now.
The Fallacy of Singular Solutions: Richards Bay is Not Enough
The 3,000 MW gas-to-power project in Richards Bay has been touted as a game-changer, a beacon of hope in a sea of rolling blackouts. But the hard truth is that the project has been bogged down by regulatory delays, environmental litigation, and infrastructure bottlenecks.
Moreover, the assumption that Richards Bay alone will fix our energy problems is not only misguided but dangerously shortsighted. South Africa needs a diversified Gas-to-Power (GTP) strategy that does not hinge on a single terminal or a single pipeline. This is where alternative solutions such as virtual pipelines and accelerated gas licensing come into play.
NERSA Must Act: Cutting Red Tape to Unlock Gas Competition
The National Energy Regulator of South Africa (NERSA) holds the key to unlocking competition in the gas market. Currently, the licensing process for gas projects is slow, bureaucratic, and riddled with red tape—a direct impediment to the rapid introduction of alternative gas suppliers. If NERSA were to expedite licensing and simplify regulatory approvals, it would pave the way for increased competition, better pricing, and enhanced supply security.
NERSA must fast-track gas trading licenses and eliminate outdated regulatory hurdles. The energy crisis will not wait for prolonged deliberations.
Beyond Richards Bay: Virtual Pipelines & LNG Cryogenic Technology
South Africa cannot afford to solely rely on the Richards Bay gas terminal and Sasol’s aging Rompco pipeline. We need to urgently consider Virtual Pipeline Systems (VPS), which allow LNG to be transported via cryogenic tankers, bypassing pipeline constraints altogether.
Virtual pipelines can:
– Deliver LNG to power plants without waiting for physical pipelines to be built
– Provide immediate relief while Richards Bay and other infrastructure are being developed
– Create a competitive gas market, reducing reliance on a single supplier
Countries like India, Brazil, and Argentina have successfully implemented virtual pipeline solutions—why is South Africa still hesitating?
Sasol & TotalEnergies: Promising but Not a Silver Bullet
The proposed Mozambique Matola LNG project—a collaboration between Sasol and TotalEnergies—aims to feed gas into the Rompco pipeline. While this is a critical project, its timeline does not align with South Africa’s urgent power crisis. We cannot afford to wait until 2028 for this gas to start flowing.
It is imperative that we look beyond Sasol and TotalEnergies and open up gas procurement to multiple suppliers and technologies.
A Call to Action: Government Must Act Now
To the Ministers of Mineral Resources and Energy, Electricity, and Eskom—South Africa is out of time. The following urgent steps must be taken:
1. NERSA must expedite gas licensing to eliminate bureaucratic delays and encourage new entrants into the market.
2. Virtual pipeline infrastructure must be prioritised alongside traditional pipelines to ensure gas supply flexibility.
3. Government must fast-track LNG procurement agreements beyond Sasol and TotalEnergies to diversify supply.
4. Independent power producers (IPPs) must be granted immediate access to gas import and distribution networks.
South Africa’s energy crisis is no longer an Eskom problem—it is a national crisis requiring multi-sectoral solutions. Political will, not policy inertia, will determine whether we remain stuck in darkness or finally move toward an energy-secure future.
About the Author
Joseph Maluleke is the Practice Head of the Resources (Mining & Energy) Division at Maluks Attorneys, Sandton, Republic of South Africa. An accomplished lawyer and an entrepreneur in the fields of Mining and energy.
