South Africa's Search for Alternatives to Coal

Interest in the development of South Africa's onshore shale gas resources is increasing. U.S. energy supermajor Chevron Corp. and Ireland-based Falcon Oil and Gas signed an agreement in December 2012 to jointly explore South Africa's Karoo Basin for shale gas. Such development of natural gas resources will help Pretoria reduce its energy dependence on coal.

This diversification away from coal is an integral part of Pretoria's long-term energy plan, which is largely a response to environmental concerns and the rising cost of coal. But several obstacles impede the development of South Africa's shale gas, including complicated geology and the lack of fresh water. Although these obstacles are not insurmountable, they will make the development process a lengthy one. Expansion in renewable energy will be South Africa's biggest push until the mid-2020s, the earliest that shale gas production could come online.