South Africa has lifted a moratorium on shale gas exploration in the semi-arid Karoo region, where the extraction technique of “fracking” might be used to tap into some of the world’s potentially largest stocks of the energy source.

Collins Chabane, a minister in the President’s office, said on Friday the Cabinet had decided to lift a moratorium, imposed in April last year, after a study eased safety concerns related to the controversial method.

“When (the results of the study) ... came back, they recommended that it was clearly safe for us to have that programme of exploration of shale gas,” Chabane told reporters.

According to an initial study commissioned by the US energy information administration, South Africa has 485 trillion cubic feet of technically recoverable shale gas resources, most of which are located in the vast Karoo Basin.

The reserves, which would rank as the fifth largest among 32 countries included in the study, could be a long-term solution for the energy problems of Africa’s largest economy, which relies on coal to produce 85% of its electricity.

A revocation of the moratorium could benefit Royal Dutch Shell, Falcon Oil & Gas, Sunset Energy and Anglo American, the Eurasia political risk consultancy said earlier this year, adding the move could be “a game changer” for South Africa’s economy.

Oil major Shell said last year it hoped to invest $200 million to explore for shale gas in the Karoo. Petrochemicals group Sasol in November put its shale gas exploration plans on hold but said it would watch further developments.

DEVASTATING IMPACT

South Africa last year imposed a fracking moratorium on oil and gas exploration licences in the Karoo region, to give time to study the potential gains and examine the concerns of environmentalists who say the process would ruin the area.

Ferrial Adam, a climate and energy campaigner at Greenpeace Africa, said the decision could start a process that could have a devastating impact for the region.

“At the end of the day it is still fracking. They are going to use a lot of water with a enormous amounts of chemicals in them in an area that is water scarce,” she said.

Fracking, or hydraulic fracturing, involves pressurised water, chemicals and sand being pumped underground to release gas trapped in rock formations. It has been opposed by landowners and environmentalists who say the process can pollute water supplies.

However it has been increasingly taken up in the United States, releasing huge quantities of natural gas and setting an example that other countries with shale gas reserves are keen to follow.

Jonathan Deal, chairman of anti-fracking Treasure the Karoo Action Group, said the decision was “hasty” and “ill-informed”.

“If any exploration licenses are issued in future, we will appeal and naturally resort to litigation should our appeals fail,” he told Reuters.

“The only way to defeat this technology permanently is to get a ruling in the country’s highest court against fracking on environmental grounds.”

Comments

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Fri May 24 15:16:13 SAST 2013 ::

Sep 7, 2012

Nincompoop

There we go again to exploitation of our land and minirals by multi-nationals. The government and cabinet should go FREK somewhere else, not in Mzansi.
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Sep 7, 2012

MommaC

Stupidest fracking idea EVER.
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Sep 7, 2012

CheeseBoy

Our govt is a b1tch to multi nationals.
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Sep 7, 2012

warry

Did they finally pay some dollars? Wow we will have a tracking deal commission of inquiry in five years time. I like this. Phambili comrades.
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Sep 7, 2012

16-12-1838

“When (the results of the study) ... came back, they recommended that it was clearly safe for us to have that programme of exploration of shale gas,” Chabane told reporters.

Should read... "When we (the greedy anc ba$tard$)... realised how much money we could make from back-handers and bribes, it became clearly advantageous for our own personal fortunes to have that programme of EXPLOITATION through shale gas" Chabane thought, while telling reporters.
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Sep 7, 2012

LOA

All this at what cost to the environment? Irreparable damage for unsustainable energy. Take it all the way to the ConCourt! Rather build a solar power station there..... Send out tenda's for that!
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Sep 7, 2012

RobinH

WTF!!!!???? Who was bribed!!! CheeseBoy... I couldn't agree more. Backsides in the air folks, we are about to be royally f*cked yet again.
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Sep 7, 2012

manu.menne

CAN YOU ALL BE POSITIVE FOR A CHANGE. NEGATIVE NEGATIVE. YOU COMPLAIN ABOUT THE PETROL PRICE. IN COUNTRIES WITH OIL RICHES, THEY PAY R2 A LITRE AND WHEN THE GOVERNMENT TRIES TO SAVE YOU R10 YOU STILL CALL THEM STUPID ON BEHALF OF 10 FARMERS
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Sep 7, 2012

manu.menne

You see petrol failed the country
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Sep 7, 2012

manu.menne

Petrosa
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