South Africa Expands Onshore Gas Exploration: A Strategic Move for Energy Resilience
South Africa is taking significant steps to tap into its domestic natural gas resources, with the Petroleum Agency South Africa (PASA) recently awarding three new exploration rights to D3 Energy. This expansion is crucial for increasing the country’s onshore gas footprint and aligns with the government’s ambitious plans to enhance the contribution of the oil and gas sector to the national GDP.
Accelerating Domestic Gas Development
In February 2026, PASA granted Exploration Rights ER391, ER392, and ER393, empowering D3 Energy to explore for petroleum, natural gas, and helium in the Free State Province. These approvals mark a pivotal phase in South Africa’s strategy to monetize its gas resources and increase the hydrocarbons sector’s share of GDP from 1% to a targeted 4%. The current situation poses an important question: Is South Africa transitioning from a licensing cycle to tangible development?
Expansion of Free State Resources
The granted exploration rights enable D3 Energy to pursue significant natural gas and helium resources, building on an already approved Technical Cooperation Permit (TCP273) that encompasses approximately 82,777 acres. "The acceptance of these Exploration Right applications marks another meaningful step in advancing our onshore gas and helium strategy in the Free State," stated David Casey, Managing Director of D3 Energy.
Strategic Goals: Reducing Import Dependence
The broader goal of these regulatory approvals is to unlock South Africa’s domestic gas supply, thereby reducing reliance on imports — currently at about 90%, primarily sourced from Mozambique. Minister of Mineral and Petroleum Resources, Gwede Mantashe, emphasized the importance of developing infrastructure to integrate newly discovered deposits. "The biggest solution is us having access to our own gas deposits," he noted at the G20 Africa Energy Investment Forum in 2025.
Positive Licensing Trends
D3 Energy’s approvals reflect a broader momentum in licensing as South Africa enhances its onshore gas sector. In January 2026, H2Au Ltd secured PASA approval for two exclusive exploration rights covering over three million acres in the Bushveld Complex, aimed at harnessing natural hydrogen resources for industrial use. Companies like Kinetiko Energy, Plateau Helium, and Motuoane Energy have also received exploration rights, signaling a renewed investor interest in South Africa’s energy landscape.
Legislative Framework: Attracting Investment
To foster further investment, South Africa is strengthening its regulatory environment. The upcoming Upstream Petroleum Resources Development Act 2024 aims to clarify licensing processes and enhance investor certainty. A public consultation on the draft legislation was conducted in January 2026, signaling the government’s commitment to support onshore exploration.
In a landmark decision, South Africa lifted its long-standing moratorium on shale gas exploration in October 2025. This move is expected to unlock the vast potential of the Karoo Basin, which is believed to contain over 200 trillion cubic feet of shale gas. Successful development of these resources could significantly reduce South Africa’s gas import dependence and enhance energy security.
Building the Future of Energy
Combined efforts, including expanded exploration rights, regulatory reforms, and legislative changes, indicate that South Africa is laying a robust foundation for transitioning from exploration to development. However, sustained capital investment and timely financial commitments will be essential in determining whether South Africa can successfully enter this new phase of energy development.
For more information on advancements in South Africa’s gas sector, visit Energy Capital & Power.
