South Africa set to import U.S. gas in major trade agreement

South Africa agreed on Monday to buy liquified natural gas from the U.S. for over 10 years as part of proposals to secure a trade deal. According to the country, the deal will be worth around $1 billion yearly.

The country’s president said in his weekly newsletter Monday that a key outcome of the talks was an agreement on an economic cooperation channel between the two nations to engage further on tariffs and many trade matters. He also believes there is potential to increase and diversify trade between the two countries in areas such as gas, mining and critical minerals, agriculture, and nuclear products.

South Africa proposes new trade deal with the U.S.

SOUTH AFRICA OFFERS TO IMPORT U.S. LNG FOR 10 YEARS IN PROPOSED DEAL
Strategic move to diversify energy mix and deepen U.S.-Africa trade ties. Positive for U.S. LNG exporters amid global push to secure long-term supply contracts. pic.twitter.com/pzN1QkJ7iO

— Naeem Aslam (@NaeemAslam23) May 26, 2025

South Africa proposed the trade deal during President Cyril Ramaphosa’s visit to the White House on May 21. A ministerial statement announcing the deal was posted on Sunday on the South African government news agency website, and it was signed by a minister in the Presidency, Khumbudzo Ntshavheni. The document revealed that South Africa aims to import 75-100 petajoules, roughly 70 to 100 million cubic meters, of LNG per year from the U.S., the world’s biggest LNG supplier.

Ntshavheni said the deal would unlock approximately $900 million to $1.2 billion in trade per annum. She believes it would unlock $9 billion to $12 billion for 10 years based on applicable price.

“South Africa and the U.S. will negotiate an arrangement to facilitate LNG imports from the U.S. at the appropriate price. This will not replace our current suppliers of gas but complement those supplies.”

-Khumbudzo Ntshavheni, Minister in the Presidency of South Africa.

The South African government news agency website, where the article was originally posted, was down on Monday. According to its editors, the document was posted a day prior, and the website was down due to technical reasons. Ntshavheni posted a link to the document on her X account on Sunday.

Ntshavheni, the cabinet spokesperson and a senior government member, accompanied the government delegation on Ramaphosa’s visit to Washington. She acknowledged that South Africa would work with the U.S. to explore areas of cooperation in technologies, including fracking, to help unlock gas production in South Africa. The country’s cabinet spokesperson said LNG imports would be augmented with U.S. investment in gas infrastructure, following South Africa’s pivot towards natural gas and away from coal-powered power stations.

South Africa argued that the U.S. LNG would fill the country’s need for gas since it imports most of its gas via pipeline from Mozambique, which could run out of gas within a few years as its neighbor’s supplies dwindle. South Africa’s Karoo region is also believed to hold significant quantities of gas, but a moratorium on shale gas exploration due to environmental concerns has halted exploration in the area. 

Trump made energy one of the bargaining chips when he unleashed global trade tensions by announcing tariffs on all his trade partners. The African nation has a significant trade deficit with the U.S., which has threatened to impose 30% tariffs.

Proposed deal includes a duty-free quota on automobile exports from SA

The proposed deal includes a duty-free quota of 40,000 vehicles per year to be exported from South Africa. Ntshavheni also revealed that the package will have duty-free access for automotive components sourced from the country for production in the U.S. According to the document, a duty-free quota of 385 kilograms for steel per year and 132 million kg of aluminum per year was also proposed.

Ramaphosa’s spokesman, Vincent Magwenya, said those are the numbers in the trade deal proposal South Africa has presented to the U.S. Trade Representative (USTR) for consideration and further negotiations.

Ramaphosa visited the U.S., hoping the meeting would reset the country’s relationship with the U.S. following Trump’s cancellation of much-needed aid to South Africa. The U.S. also offered refugee states to white minority Afrikaners, expelled the country’s ambassador, and criticized its genocide court case against Israel. 

During the meeting, U.S. President Donald Trump confronted Ramaphosa over government policies, such as land reform and Black economic empowerment, and also made false claims of a “genocide” against whites.

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