Shell has entered into South African deepwater natural gas exploration after acquiring a 50% stake and the right to operate the Algoa and Transkei blocks. According to Shell’s partner, Canada-based Africa Oil, the Algoa block is located in the same basin as Brulpadda and Luiperd discovered by Total in 2019 and October, respectively. Meanwhile, the Transkei block is in a nearby but different geological basin. According to Shell, the exploration strategy is in line with its global portfolio.
For South Africa, the new gas discoveries would help the country to reduce heavy dependence on coal. It will also provide feedstock for the Mossel Bay gas-to-liquids plant, part of the country’s gas-to-power program. PetroSA gas-to-liquids plant at Mossel Bay could lose feedstock supply in the next two years when the current offshore gas reserves are expected to dry up.
