Mining Weekly reported that according to a new report by the World Energy Council (WEC), South Africa could become a major unconventional gas producer. However, the country will need to invest in infrastructure, develop local expertise and create a framework to encourage investment if it wants to do so.

As quoted in the market news:

Launched at Africa Gas Forum, in Sandton, on Monday, the report pointed out that the large reserves of shale gas identified in the Karoo basin could provide up to 4% of the country’s additional electricity requirements with no need for pipelines.

South Africa had been estimated to have technically recoverable shale gas volumes of between 30-trillion cubic feet (tcf) and 500 tcf.

To leverage the opportunities shale gas could bring, South Africa needed to plan infrastructure and ensure efficient water management, build local expertise and provide financial incentives such as tax incentives, said WEC secretary-general Christoph Frei.

Click here to read the full Mining Weekly report.

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