May 27, 2025 (MarketLine via COMTEX) --
The trade deal was unveiled when President Cyril Ramaphosa met with President Donald Trump at the White House.
South Africa has proposed purchasing liquefied natural gas (LNG) from the US as part of a broader trade deal negotiation.
The offer, intended to span a ten-year period, was revealed in a ministerial statement from the South African Government, reported by Reuters.
The statement, authored by Minister in the Presidency Khumbudzo Ntshavheni, outlined South Africa's intention to import between 75 petajoules (PJ) and 100PJ of US LNG annually.
This volume, equivalent to approximately 75aEUR"100 million cubic metres, could facilitate trade worth between $900m (R16.13bn) and $1.2bn each year, potentially reaching $9bnaEUR"12bn over the decade, based on current prices.
This trade package was presented during President Cyril Ramaphosa's visit to the White House on 21 May, amidst discussions with President Donald Trump.
Trump raised concerns over South African policies, including land reform and Black economic empowerment, and made unsubstantiated claims of a "genocide" against white farmers.
Despite these tensions, Ramaphosa aimed to strengthen bilateral relations, particularly after the US had previously taken measures that strained ties, such as cancelling aid, offering refugee status to white Afrikaners, expelling the South African ambassador and criticising the country's legal actions against Israel.
As a senior government official and cabinet spokesperson, Ntshavheni accompanied Ramaphosa to Washington.
She highlighted potential cooperation with the US in various technologies including fracking to enhance gas production within South Africa.
The proposed trade deal also includes incentives for South African exports, such as a duty-free quota for 40,000 vehicles annually, duty-free access for automotive components used in US production, and significant duty-free quotas for steel and aluminium.
Trump's recent global trade policy shifts, which include imposing tariffs on trade partners, have positioned energy as a key element in trade negotiations.
For South Africa, facing the potential depletion of gas supplies from Mozambique, US LNG could be a critical resource.
The country's Karoo region is believed to contain substantial gas reserves, but environmental concerns have stalled exploration efforts.
Ntshavheni was quoted by the news agency as saying: "(South Africa) and the US will negotiate an arrangement to facilitate LNG imports from the US at the appropriate price. This will not replace our current suppliers of gas but complement those supplies.aEUR
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COMTEX_465856928/2227/2025-05-27T09:34:25
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