South Africa must pursue the potential for shale-gas drilling in the Karoo region because it may transform the country’s economy, President Jacob Zuma said.
The government will decide whether to allow shale-gas exploration in the region early next year after consulting local communities, Zuma said in Hozatel, Northern Cape province.
South Africa, seeking to tap as much as 485 trillion cubic feet of gas resources in the Karoo, published draft regulations governing hydraulic fracturing on Oct. 15, a year after lifting a ban on the drilling process known as fracing. Opponents of the practice, which blasts water, chemicals and sand into rock to release gas, say it risks contaminating ground water.
Companies should “care for the environment” as they look for viable shale-gas reserves, Zuma said today. Given the opportunity for the Karoo region and the economy as a whole, “we must explore this potential.”
The president is seeking ways to revive growth after the economy expanded at the slowest pace since the 2009 recession in the third quarter. Pay strikes in mining, construction and car manufacturing this year have weighed on industrial output and the Reserve Bank last week cut its full-year growth forecast.
Recommended Reading
White House Open to Ending LNG Export Pause in Push for Ukraine Aid, Sources Say
2024-04-02 - Reversing the pause could be tolerable to the White House in order to advance Ukraine aid, in part because the pause has no bearing on near-term LNG exports, the White House sources said.
Shipping Traffic Freezes Up in Port Waters After Baltimore Bridge Collapse
2024-03-26 - U.S. port of Baltimore traffic was suspended until further notice following a bridge collapse. At least 13 vessels expected to load coal were anchored near the port at the time of the incident.
Exclusive: Can NatGas Save the 'Fragile' Electric Grid?
2024-02-28 - John Harpole, the founder and president of Mercator Energy, says he is concerned about meeting peak electric demand and if investors will hesitate on making LNG export facilities investment decisions after the Biden administration's recent LNG pause, in this Hart Energy LIVE Exclusive interview.
US Expected to Supply 30% of LNG Demand by 2030
2024-02-23 - Shell expects the U.S. to meet around 30% of total global LNG demand by 2030, although reliance on four key basins could create midstream constraints, the energy giant revealed in its “Shell LNG Outlook 2024.”
Silver Linings in Biden’s LNG Policy
2024-03-12 - In the near term, the pause on new non-FTA approvals could lift some pressure of an already strained supply chain, lower both equipment and labor expenses and ease some cost inflation.