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27 May 2025

South Africa Proposes Buying US LNG as Seeks Trade Deal

27 May 2025  by Reuters   
South Africa has proposed importing liquefied natural gas (LNG) from the United States over a 10-year period to strengthen trade ties, according to a statement by Minister in the Presidency Khumbudzo Ntshavheni. The announcement, posted on the South African government news agency website, outlines a plan to enhance economic cooperation.


U.S. President Donald Trump and South African President Cyril Ramaphosa looks towards a monitor (not pictured) that shows videos allegedly pertaining to the genocide of white people in South Africa, in the Oval Office of the White House in Washington, D.C., U.S., May 21, 2025.

The proposal, signed by Ntshavheni, details South Africa’s intent to import 75-100 petajoules, or roughly 75-100 million cubic meters, of LNG annually from the U.S., the world’s largest LNG exporter. Ntshavheni stated: “This will unlock approximately $900 million to $1.2 billion in trade per annum and $9 billion to $12 billion for 10 years based on applicable price.” This initiative aims to support South Africa’s energy transition from coal to natural gas.

Presented during President Cyril Ramaphosa’s visit to the White House, the trade package seeks to foster collaboration. Ntshavheni, a senior cabinet member and government spokesperson, accompanied Ramaphosa to Washington. She highlighted potential cooperation in technologies, such as fracking, to boost South Africa’s domestic gas production.

The proposal includes duty-free exports from South Africa, such as 40,000 vehicles annually and automotive components for U.S. manufacturing. It also outlines duty-free quotas of 385 million kilograms of steel and 132 million kilograms of aluminum per year.

To support LNG imports, U.S. investment in South Africa’s gas infrastructure is planned. South Africa, which imports most of its gas via a pipeline from Mozambique, faces potential shortages as those supplies dwindle. Ntshavheni emphasized: “(South Africa) and the U.S. will negotiate an arrangement to facilitate LNG imports from the U.S. at the appropriate price. This will not replace our current suppliers of gas but complement those supplies.”

South Africa’s Karoo region holds potential gas reserves, but exploration remains stalled due to environmental concerns. The proposed U.S. LNG imports aim to address energy needs while complementing existing supply chains.

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