(Ecofin Agency) - • South Africa explores US collaboration on hydraulic fracturing to access vast shale reserves
• The Karoo Basin could hold up to 209 trillion cubic feet of gas, but legal and environmental hurdles remain
• The government sees shale as a transitional energy source amid chronic power outages

Amid an ongoing energy crisis, South Africa is reviving interest in a long-debated plan to exploit shale gas reserves in the Karoo Basin, with a focus on securing technological support from the United States. The move comes despite persistent legal and environmental challenges.

During President Cyril Ramaphosa’s recent visit to Washington, the South African Presidency expressed its intent to cooperate with the US on technologies such as hydraulic fracturing. The objective is to unlock the country's significant shale gas potential, which could help reduce its reliance on coal and stabilize its energy supply.

The initiative comes at a time of deep energy insecurity. South Africa continues to suffer from frequent electricity outages due to aging infrastructure and inadequate generation capacity. Although the country aims to source 33% of its electricity from renewables by 2030, the current pace of transition is insufficient to address near-term energy needs.

In this context, the government is reconsidering shale gas development in the semi-arid Karoo region, where estimated reserves range from 13 to 209 trillion cubic feet. These resources could play a vital role in ensuring energy autonomy and bridging the gap between coal and renewables.

However, the project faces significant legal setbacks. In October 2017, the High Court invalidated the existing regulations governing hydraulic fracturing, following a lawsuit from agricultural and environmental groups. These stakeholders cited the risks to water resources and fragile ecosystems in the Karoo as primary concerns.

Despite this opposition, the government in 2023 authorized a tender process for roughly ten exploration blocks in the Karoo, pending the adoption of new hydrocarbon legislation intended to clarify the legal framework. While Shell has withdrawn from the project, other firms such as Falcon Oil & Gas and Bundu remain interested.

Energy analysts argue that even a modest portion of the gas could be transformative. According to the South African Academy of Sciences, a power station fueled by just 5 trillion cubic feet of gas could provide decades of stable electricity.

For the Ramaphosa administration, shale gas is viewed as a necessary transitional resource. The main challenge now is to secure US technical expertise, while also establishing investor protections through clear regulation. However, public skepticism remains high, with unresolved questions about the economic, environmental, and social costs of developing this unconventional energy source.