Thoughts on Gas Pricing Mechanisms for South Africa

South Africa is a mineral rich country with an energy intensive economy. Its electricity sector, a vital part of its economy, relies heavily on coal to produce well over 85% of all its power from this indigenous resource. Lack of energy diversity means less energy security as the country’s electricity production is highly carbon intensive with over 800gCO2/kWh – a situation which has resulted in several environmental and economic problems.