South Africa to Start Shale Gas Exploration Next Financial Year

Shale gas exploration in South Africa is expected to commence in the next financial year (Apr-Mar).

“One area of real opportunity for South Africa is the exploitation of shale gas. Shale gas regulations were published in the second quarter of 2015-16. Exploration activities are scheduled to commence in the next financial year. This will lead to excellent prospects for beneficiation and add value to our mineral wealth, the South African government said in a statement published on its website Tuesday.

In January, Minister for Mineral Resources, Mosebenzi Zwane stated that South Africa has world’s 5th largest shale gas reserves.

“Currently South Africa is a net importer of energy sources such as crude oil, refined petroleum products and natural gas. It is estimated that the Karoo shale gas resources would mean South Africa has the 5th largest reserves, estimated at 485 trillion cubic feet (Tcf),” Zwane said in January. “We however take a conservative view of a 30 Tcf economically recoverable resource, which is equivalent to 30 times the size of the Mossgas plants.”

Regulatory hurdles have resulted in delay in start of shale gas exploration in the country. Energy major Shell last year exited the shale gas exploration space due to repeated delays in issuance of licences.