SA has offered to buy liquefied natural gas (LNG) from the US over 10 years as part of proposals to secure a trade deal, according to a ministerial statement posted on the government news agency website.
The document, signed by minister in the Presidency Khumbudzo Ntshavheni and posted late on Sunday, said SA aims to import 75 to 100 petajoules, roughly 75-million to 100-million cubic metres, of LNG per year from the US, the world’s biggest LNG exporter.
The minister said that would “unlock approximately $900m (R16bn) to $1.2bn (R21.4bn) in trade per annum and $9bn (R161bn) to $12bn (R214.4bn) for 10 years based on applicable price”.
The trade package was proposed by SA during President Cyril Ramaphosa’s visit to the White House on May 21, when President Donald Trump confronted him over government policies, such as land reform and black economic empowerment, and made false claims about a “genocide” against whites.
Ramaphosa had hoped to use the meeting to reset his country’s relationship with the US after Trump cancelled much-needed aid to SA, offered refugee status to white minority Afrikaners, expelled the country’s ambassador and criticised its genocide court case against Israel.
Ntshavheni, a senior member of government and cabinet spokesperson, was part of the government delegation that accompanied Ramaphosa to Washington.
She said SA would work with the US to explore areas of cooperation in technologies, including fracking, to help unlock gas production in SA.
The proposed package also includes a duty-free quota of 40,000 vehicles per year to be exported from SA and duty-free access for automotive components sourced from the country for production in the US
