South Africa has proposed a long-term agreement to import liquefied natural gas (LNG) from the United States over a ten-year period, aiming to enhance trade relations and support its energy transition.
The proposal was detailed in a ministerial statement signed by Minister in the Presidency, Khumbudzo Ntshavheni, and published on the South African government news agency website.
According to the statement, South Africa plans to import between 75 and 100 petajoules (PJ)—equivalent to approximately 75 to 100 million cubic metres—of LNG annually from the U.S., the world’s leading LNG exporter.
“This would unlock approximately $900 million to $1.2 billion in trade per year, or $9 billion to $12 billion over a decade based on prevailing prices,” the minister noted.
The trade proposal was presented during President Cyril Ramaphosa’s visit to the White House on May 21.
The meeting, however, was marked by tensions, as then-U.S. President Donald Trump raised concerns over South Africa’s domestic policies, including land reform and black economic empowerment, and made unfounded claims about a “genocide” targeting white South Africans.
President Ramaphosa had hoped to use the meeting to restore diplomatic ties with Washington, which had been strained after Trump halted development aid, offered asylum to white South Africans, expelled the South African ambassador, and criticized the country’s legal action against Israel at the International Court of Justice.
Ntshavheni, who also serves as the cabinet spokesperson, was part of the South African delegation in Washington.
She stated that South Africa is keen to explore technical cooperation with the U.S. in areas such as fracking to help unlock domestic gas reserves, particularly in the Karoo region, which is believed to hold significant untapped shale gas. Exploration there has been delayed due to a moratorium driven by environmental concerns.
The proposed trade package includes more than LNG imports. It also offers the U.S. a duty-free quota of 40,000 vehicles annually from South Africa, along with duty-free access for South African automotive components used in U.S. manufacturing.
In addition, South Africa proposed annual duty-free quotas for key industrial materials: 385 million kilograms of steel and 132 million kilograms of aluminium.
The South African government news agency website, where the statement was originally published, was inaccessible on Monday due to technical issues.
However, Reuters confirmed having seen the document. Ntshavheni also shared a link to the document on her official X (formerly Twitter) account on Sunday.
It remains unclear whether the published version is final, and neither her spokesperson nor the presidency responded to media queries.
Ntshavheni emphasized that U.S. LNG imports would be supported by American investment in South Africa’s gas infrastructure, helping the country pivot from coal-fired power to cleaner energy sources.
South Africa currently imports most of its gas through a pipeline from Mozambique, but those reserves are projected to decline in the coming years. The proposed LNG deal would supplement—rather than replace—existing supply sources.
“South Africa and the U.S. will negotiate an arrangement to facilitate LNG imports at an appropriate price. This will complement, not replace, our current gas suppliers,” Ntshavheni stated.
