Energy Security

South Africa's Transnet National Ports Authority has signed a 25-year terminal operator agreement with Ukwanda LNG to develop an onshore liquefied natural gas regasification facility at the Port of Ngqura in the Eastern Cape, with a reported investment value of about R22-billion and an additional R2-billion from TNPA for a dedicated LNG berth. The initial phase will comprise floating LNG storage and regasification infrastructure expected to deliver gas supply before 2030, while the full terminal, with a yearly capacity of 3.6-million tonnes, is targeted for operationalisation by 2035. The project is designed to supply gas to off-takers, industry, data centres and independent power producers to enable the production of about 3 500 MW of electricity within the Coega Special Economic Zone, in line with South Africa's energy security requirements and just energy transition imperatives. Transport Minister Barbara Creecy, who issued the Section 79 directive authorising the Strategic Fuel Fund to build and operate the facility, says the agreement reflects a collective commitment to delivering LNG as an alternative energy source. South Africa's Integrated Resource Plan has allocated 6 500 MW for gas-to-power development by 2030 and a total of 16 000 MW by 2039, though the International Energy Agency warns that strong demand in the US and Middle East is limiting the availability of turbines for near-term deployment elsewhere in the world.

Countries are increasingly prioritising domestic energy resources to reduce reliance on imported fuels in response to what the International Energy Agency describes as the world's largest-ever energy security crisis, precipitated by the closure of the Strait of Hormuz. The IEA's eleventh World Energy Investment report shows that governments are reshaping investment strategies around diversification, electrification and energy efficiency, with worldwide energy investments forecast to rise to $3.4-trillion this year. About $2.2-trillion is expected to go to grids, storage, low-emissions fuels, nuclear, renewables, efficiency and electrification in 2026, while around $1.2-trillion is set to be invested in oil, natural gas and coal. Solar panel imports to developing countries in Asia and Africa have jumped in recent months, with 15 African countries reporting record-high solar imports of more than $400-million in the first quarter of 2026, compared with $650-million for the whole of 2025.

South Africa's utility-scale renewables and battery storage market is poised for a record year of installations, with eight projects representing 1 932 MW having already advanced to financial close by April 30 and a further 26 projects, representing 3 320 MW, poised to achieve that milestone by year-end, according to research from the Power Futures Lab at the UCT Graduate School of Business. If the full 2026 pipeline closes as expected, the year would total 34 financial closures representing about 5 252 MW of new renewable energy capacity, the highest single-year volume in South Africa's history and surpassing the 3 562 MW recorded across 35 closures in 2024. A defining feature of the 2026 deal flow is the role of licensed electricity traders as intermediaries between independent power producers and corporate electricity users, with five of six confirmed commercial and industrial closures being trader-intermediated and accounting for 1 219 MW, or about 80% of the 1 519 MW of confirmed commercial and industrial capacity.

The City of Johannesburg Council has approved a R97.1-billion budget for 2026/27, anchored on the theme "Building Johannesburg Together: Investing Today, Securing Tomorrow" and seeking to strengthen infrastructure investment, improve service delivery, advance financial sustainability and support inclusive economic growth. Key allocations include investments towards electricity infrastructure rehabilitation and energy security through City Power, water and sanitation infrastructure upgrades, roads and public transport improvements, inner-city rejuvenation and township renewal programmes, and safety and law enforcement interventions. Moody's Ratings has affirmed Eskom's B2 long-term corporate family rating, attributing the affirmation to the utility's improving operational performance, strengthened cash flow generation and liquidity position, supported by government debt relief measures, though the rating agency notes ongoing constraints including rising municipal debt arrears, regulatory challenges associated with tariffs and significant capital expenditure requirements. Eskom Group Chief Executive Dan Marokane says the utility reached the milestone of one year without loadshedding earlier this month, advancing the stability of the grid and energy security in South Africa.