Just under two years after the outbreak of war in Ukraine, South Africa continues to nurture its ties with Russia, particularly on the economic front. On Monday December 11, the ANC government announced that it had given the go-ahead for the State-owned PetroSA to enter into a partnership with Gazprombank, the Russian gas giant’s bank. The company wants to reopen one of its gas processing plants, despite US sanctions.
The partnership should enable PetroSA to re-establish its Mossel Bay plant in the south of the country, which used to process natural gas into liquid fuel at a rate of 45,000 barrels per day. This plant is an important part of the South African state-owned company’s strategy, and a decisive factor in negotiations with the French company Total. The latter would like to exploit offshore gas in the region, but has not been operating since 2020 due to declining resources.
According to Khumbudzo Ntshavheni, South Africa’s Minister of the Presidency, this decision is in line with the rapprochement between the Brics countries, and the US sanctions against Gazprombank should have no impact on the project. The final decision is expected to be announced next April.
Russian companies Gazprom and Rosatom have also recently expressed their willingness to help South Africa overcome its energy crisis. The country’s Energy Minister is due to give details of possible nuclear projects on Tuesday December 12.