South Africa has proposed a $12 billion liquefied natural gas (LNG) deal with the United States as it eyes a broader 10-year trade package allowing duty-free access for vehicle and steel exports to Washington.
In a statement on Monday, Minister in the Presidency Khumbudzo Ntshavheni said the deal is part of a trade package put on the table by South Africa during discussions between President Cyril Ramaphosa and US President Donald Trump on 21 May.
The proposal commits South Africa to importing approximately 75–100 million cubic meters of US LNG annually over the next 10 years.
“SA will import 75 – 100 PJ (petajoules) per annum for 10 years of LNG gas from the US which will unlock approximately US$900 million to US$1.2 billion in trade per annum and US$9 billion – US$12 billion for 10 years based on applicable price,” Ntshavheni said.
She said this would be “complemented with US investment in gas infrastructure in SA.”
“SA will work with the US to explore areas of cooperation in key technologies, including fracking technology to unlock production of gas in SA.”
According to the minister, the two countries would negotiate an arrangement to facilitate LNG imports from the US at the appropriate price.
“This will not replace our current suppliers of gas but complement those supplies,” she said.
South Africa currently relies on pipeline gas from Mozambique, which could deplete in coming years, raising concerns over energy security.
While Trump’s recent tariff hikes have heightened global trade tensions, energy remains a bargaining chip in US negotiations.
South Africa’s pivot toward natural gas aligns with efforts to stabilise its energy sector amid persistent electricity shortages.
Ntshavheni announced that in return to the gas deal, South Africa proposed that it be given duty-free quotas for 40,000 vehicle exports per year and tariff exemptions on steel and aluminium shipped to the US.
JN/APA