South Africa is preparing to enter a landmark energy and trade agreement with the United States that could see the country import vast quantities of liquefied natural gas (LNG) over the next decade. The proposed deal, valued between $9 billion and $12 billion, marks a significant shift in South Africa’s efforts to diversify its energy sources and deepen international trade ties.
According to Minister in the Presidency Khumbudzo Ntshavheni, the arrangement outlines annual LNG imports of between 75 and 100 petajoules from the United States over a ten-year period. At current projections, the imports are expected to generate trade volumes of $900 million to $1.2 billion each year.
“This initiative will not displace our current gas suppliers, but rather broaden our supply base,” Ntshavheni stated in a government update released Sunday night. She confirmed that both nations are engaged in discussions to agree on pricing structures that will ensure long-term stability and affordability.
Beyond energy imports, the proposed framework includes significant infrastructure investment. The United States is expected to play a central role in developing South Africa’s domestic gas infrastructure, with a focus on collaborative technologies such as hydraulic fracturing to support local gas production.
The scope of cooperation stretches further, encompassing mineral resources and industrial trade. The two governments plan to establish a joint investment fund for critical minerals exploration, reinforcing South Africa’s role in the global supply chain for strategic resources.
On the trade front, the deal would unlock expanded market access for South African exports. It includes duty-free quotas allowing for the annual export of 40,000 vehicles and related automotive parts to the US. Additionally, South African steel and aluminum producers stand to benefit from yearly duty-free allocations of 385 million kilograms and 132 million kilograms, respectively.
“The finalisation of this agreement is in progress, with joint teams from both sides working to secure the remaining details,” said Ntshavheni.
If concluded, the deal would mark one of the most comprehensive trade and energy partnerships between South Africa and the United States in recent years. Analysts say it could serve as a template for broader African-American economic cooperation, particularly in the fields of energy transition and industrial development.