Energy Capital & Power

South Africa Greenlights LPG Market Expansion

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LPG tanks. Bigstock

Image credit: Bigstock.

Developed by the Department of Mineral Resources and Energy (DMRE), South Africa’s Liquefied Petroleum Gas (LPG) Rollout Strategy has been approved by Cabinet. The objective of the plan is to advance the domestic industry and expand the application of LPG in diversifying the energy mix.
Energy security, affordability and decarbonization represent key components. While South Africa battles a constrained national grid, the rollout strategy aims to reduce pressure on the grid while also reducing consumer dependence on expensive fossil fuels such as coal and paraffin for cooking and heating.

The DMRE has outlined in a draft version of the document that the plan will address challenges such as lack of adequate infrastructure across the entire LPG value chain – this will range from production and distribution to wholesaling and retailing. The DMRE has also revealed that it seeks to double the LPG market by 2026 in a bid to provide consumers with a more affordable, cleaner and greener energy resource.

The DMRE will work in partnership with both private and public sector institutions, such as the Central Energy Fund, to accelerate the development of key gas infrastructure and to increase market players in a bid to stimulate competition.

Minister in the Presidency, H.E Mondli Gungubele, stated at a post-Cabinet briefing that the strategy aims to, “…regulate pricing in the (relevant) value chain and support the manufacturing of LPG cylinders in the country. It will also educate the public about the benefits of using LPG as an alternative form of energy.”

The strategy also prioritizes expanding the southern African country’s refinery capacity to reduce imports. The approved strategy will be available for download from the DMRE website once published.

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Nicholas Nhede

Nicholas Nhede

Nicholas is an energy sector journalist with a passion on how technology and diversification of the energy mix can be used to address energy sector challenges. Nicholas holds a diploma in Journalism and Communication studies and has been covering energy-related topics including the Internet of Things, distributed energy and digitalisation since 2015.