South Africa tables 10-year LNG import deal with U.S., seeks trade concessions

Business Insider

30-05-2025

South Africa has proposed a decade-long liquefied natural gas (LNG) import agreement with the United States as part of efforts to deepen bilateral economic relations and secure favorable trade terms.
South Africa proposes a decade-long LNG import deal with the US to bolster bilateral economic ties.
This agreement includes an annual purchase of 75-100 petajoules of LNG to stabilize South Africa's energy supply.
The plan aims to reset strained relations and strengthen South Africa's strategic partnership with the US.
The proposal, outlined in a ministerial statement signed by Khumbudzo Ntshavheni, Minister in the Presidency, signals South Africa's intent to purchase between 75 to 100 petajoules of LNG annually from the United States, the world's largest LNG exporter.
Ntshavheni said the deal would " unlock approximately $900 million to $1.2 billion in trade per annum and $9 billion - $12 billion for 10 years based on applicable price".
This offer forms part of South Africa's broader strategy to stabilize i ts domestic energy supply while reinforcing its role as a strategic trade partner, particularly amid ongoing discussions about the future of the African Growth and Opportunity Act (AGOA).
Reuters reports that the trade package was among the deals concluded at the White House during President Cyril Ramaphosa's recent visit t o Washington.
The visit followed President Donald Trump's direct confrontation with Ramaphosa over allegations of discrimination against white farmers and concerns surrounding South Africa's land reform policies.
In response, Ramaphosa initiated several trade and investment deals in a bid to repair and strengthen economic relations with the United States, after South Africa lost access to certain U.S. aid programs.
The proposed trade package includes not only LNG imports but also a commitment to collaborate with the U.S. on energy technologies—particularly fracking—to help unlock South Africa's untapped natural gas reserves.
Additionally, South Africa is seeking duty-free access for 40,000 vehicles annually and related automotive components, as well as quotas allowing 385 million kilograms of steel and 132 million kilograms of aluminium to enter the U.S. market without tariffs.
These measures reflect Pretoria's wider push to reassert itself as a vital economic and strategic partner to Washington.
U.S. dominates global LNG export market
The United States, already the world's largest exporter of liquefied natural gas (LNG), is further expanding its global energy reach as part of President Donald Trump's pledge to " unleash American energy" by declaring an energy emergency.
A key component of this strategy is the rapid growth of LNG exports.
Although Africa has major LNG suppliers such as Algeria, Nigeria, and Egypt, South Africa has chosen to turn to the United States for its LNG imports.
This move is partly aimed at appeasing the Trump administration and helping to reset the strained relationship between the two countries.
Global Firepower ranks South Africa as the sixth-largest consumer of natural gas in Africa.
According to preliminary data from LSEG, the U.S. exported a record 9.3 million metric tons (MT) of LNG in March 2024, surpassing the previous record of 8.6 MT set in December 2023.
This surge was driven in part by the ramp-up of Phase 1 of Venture Global Inc.'s 3.2 billion cubic feet per day (bcfd) Plaquemines LNG plant in Louisiana, which is still under construction.
According to data from the US Energy Information Administration, (EIA), while Europe, including Türkiye, remained the largest market for U.S. LNG, accounting for 53% of total exports or 6.3 billion cubic feet per day (Bcf/d)—demand in Asia saw a notable increase.
The Asian share rose from 26% (3.1 Bcf/d) in 2023 to 33% (4.0 Bcf/d) in 2024. Exports to other regions, including the Middle East, North Africa, and Latin America, also grew significantly, climbing from 8% (0.9 Bcf/d) in 2023 to 14% (1.6 Bcf/d) in 2024.