South Africa will lift the shale-gas moratorium in this month

The South African government will lift its long-standing ban on shale exploration once new regulations are published this month.

In 2011, the regulator was prohibited from processing any new applications for exploration or production rights, as well as reconnaissance permits. This ban followed a public outcry by environmental activists concerned about the effects of hydraulic fracking on the Karoo region.

In a statement released after the cabinet meeting on Thursday, the environment minister announced that the regulations for shale-gas production had been finalized and would be published by the end of October.

Gwede Mantashe, Minister of Mineral and Petroleum Resources said: "Once these regulations are gazetted I will lift the moratorium." Oil and gas can be a trigger for growth in the economy.

South Africa is moving away from coal-fired power plants, which are more polluting and provide the majority of its electricity needs.

The regulations for shale gases will provide a framework that controls environmental and safety concerns including water challenges associated with fracking within the semi-arid Karoo area.

South Africa's economy is the most advanced on the continent and relies on gas piped from Mozambique for industrial users. However, these fields are running out.

Richards Bay is developing the country's first import terminal for liquefied gas.

According to the Petroleum Agency of South Africa, there are around 209 trillion cubic foot of technically recoverable gas in the Karoo Basin. A 2017 study by University of Johannesburg geologists said that the amount ranged from 13 tcf to 390 tcf, and was likely close to the lower range. (Reporting and editing by Sfundo parakozov, Barbara Lewis, and Wendell Roelf)

(source: Reuters)