News Industry

South Africa Seeks US Support to Unlock Shale Gas Potential

South Africa Seeks US Support to Unlock Shale Gas Potential
Wednesday, 28 May 2025 12:11

• 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 While Shell has withdrawn from the project, other firms such as Falcon Oil & Gas and Bundu remain interested.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.

On the same topic
The African Development Bank approved a $16.5 million loan to support the 35-MW OrPower Twenty-Two geothermal project in Kenya. The...
West Wits Mining raised A$33.74 million ($23 million) to advance the Qala Shallows gold project in South Africa. The company expects the first...
Star Oil Limited suspended its membership in Ghana’s Chamber of Oil Marketing Companies over disagreements on fuel price floor communication. The...
DR Congo plans to tighten controls on mining exports to boost revenue collection, according to an IMF report published in January...
Most Read
01

Togolese banks provided 16.2% of WAEMU cross-border credit by September 2025 Regional cross...

Togo accounts for 16.2% of cross-border bank financing in WAEMU
02

The BoxCommerce–Mastercard Partnership introduces prepaid cards, giving SMEs instant access to e...

South Africa’s BoxCommerce Partners with Mastercard on SME Fintech Solution
03

Nigeria licensed Amazon’s Project Kuiper to operate satellite services from 2026, setting up dir...

Amazon and Starlink Set Up Satellite Internet Rivalry in Africa
04

Microfinance deposits in Togo increased by CFA11.9 billion, a 2.7% rise in the second quarter of 2...

Microfinance: Deposits in Togo Rise 2.7% in Second Quarter of 2025
05

Gas-fired plants and renewables anchor Mauritania’s electricity expansion plan New thermal, solar...

Mauritania shapes power supply growth around gas and renewables
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.