Sasol advances Methane Rich Gas (MRG) supply solution to sustain South Africa’s gas market beyond 2028

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Sasol advances Methane Rich Gas (MRG) supply solution to sustain South Africa’s gas market beyond 2028

7:44 CAT | 07 Nov 2025

Image via Sasol

Date

6 November, 2025

Johannesburg, South Africa – Sasol is pleased to announce significant progress in the development of a Methane Rich Gas (MRG) supply solution aimed at ensuring continuity of gas supply to the South African market beyond June 2028.

As natural gas production from Mozambique declines, Sasol has proactively explored alternative solutions to bridge the anticipated supply gap. The company has confirmed the technical feasibility of supplying MRG from its Secunda operations to external customers for a limited bridging period from July 2028 to June 2030. This initiative forms part of Sasol’s broader strategy to safeguard the gas market and enable a smooth transition to Liquefied Natural Gas (LNG) as a long-term solution.

“Sasol remains committed to supporting the South African industrial gas market,” said Dumisani Bengu, Senior Vice President: Marketing & Sales Energy at Sasol Gas. “The MRG solution provides a critical supply bridge while LNG infrastructure is being developed, and we are engaging customers to ensure alignment on this approach.”

The successful implementation of the MRG solution is subject to regulatory approval of Sasol Gas’s Maximum Gas Price (MGP) application to the National Energy Regulator of South Africa (NERSA). The MGP will reflect the cost of acquiring MRG from Sasol South Africa, the producer, and will be determined in accordance with NERSA’s pricing methodology. Sasol has initiated discussions with NERSA to ensure a fair and transparent process that supports economic viability for both the producer and the trader.

Sasol is currently engaging with customers to discuss the proposed MRG solution, assess infrastructure compatibility, and confirm volume requirements. These engagements will inform the final investment decision (FID) for the necessary modifications to enable MRG supply.

Sasol continues to advance its LNG strategy in parallel, with multiple terminal options under consideration to meet long-term gas demand in both inland and coastal regions.

Sasol Limited | Sasol advances Methane Rich Gas (MRG) supply solution to sustain South Africa’s gas market beyond 2028. Read more https://t.co/mRLQMsGvP7 pic.twitter.com/X16icPUez9

— Sasol (@SasolSA) November 6, 2025