Now Reading
Post-Election Tension: Instability Threatens Regional Gas Supply and Industrial Operations in Mozambique and South Africa

Post-Election Tension: Instability Threatens Regional Gas Supply and Industrial Operations in Mozambique and South Africa

The Industrial Gas Users Association of Southern Africa (IGUA-SA) has warned that political instability in Mozambique, stemming from the results of the 9 October elections, threatens regional gas supplies and could lead to the permanent closure of critical industrial operations in the country and in South Africa, Energize reported.

According to Jaco Human, executive director of IGUA-SA, ‘the ongoing civil unrest in the country exacerbates concerns about possible interruptions to gas supplies, which are essential for industries such as paper and pulp, steel, glass, aluminium, ceramics and fast-moving consumer goods’.

These industrial units depend directly on gas to power their production processes, and the transition to energy alternatives is considered unfeasible due to the existing infrastructure.

‘For more than two decades, these industries have structured their operations around a stable supply of gas. Any interruption poses a significant threat,’ added Human.

The situation has been particularly difficult for Sasol, which has seen a reduction in natural gas production at its Temane plant in the southern province of Inhambane. According to Alex Anderson, the company’s Senior Director of Media Relations and External Communications, the decline in productivity is a direct result of the instability in the region.

Despite the adversity, he underlined that the security of the gas value chain infrastructure and pipeline network remains under control: ‘Our priority continues to be the safety of employees, service providers and assets,’ he said, stressing that ‘Sasol is in dialogue with the Mozambican and South African governments and is monitoring developments on the ground’.

In addition, an industry source revealed that several international companies considered declaring ‘force majeure’ during the height of the unrest in December. Australia’s Syrah Resources declared ‘force majeure’ at its graphite exploration site in Balama, in the northern province of Cabo Delgado, due to the protests in the region, which resulted in the non-payment of loans obtained from US entities. The company, which supplies around 80 per cent of the graphite used by Tesla in battery production, is facing significant impacts.

The crisis in Mozambique emphasises the fragility of regional supply chains and the dependence on a stable political context for the continuity of industrial and energy operations in southern Africa.

See Also

SUBSCRIBE TO GET OUR NEWSLETTERS:

Scroll To Top

We have detected that you are using AdBlock Plus or other adblocking software which is causing you to not be able to view 360 Mozambique in its entirety.

Please add www.360mozambique.com to your adblocker’s whitelist or disable it by refreshing afterwards so you can view the site.