South Africa Gas Equipment Market Overview, 2031

Key Insights

• According to the research report, "South Africa Gas Equipment Market Outlook, 2031," published by Bonafide Research, the South Africa Gas Equipment Market is anticipated to grow at more than 6.08% CAGR from 2026 to 2031.
• South Africa's gas equipment market is defined by an approaching supply cliff rather than a demand boom. Sasol has confirmed it will cease gas supply to the market by June 2028, while Mozambique's Pande-Temane fields face declining output. The country consumes approximately 185 petajoules of natural gas annually, nearly 90% of which is imported from Mozambique, and roughly 300 large industrial gas users could be affected if alternative supply is not secured. This creates an urgent procurement imperative that differs fundamentally from markets driven by steady demand growth.
• The Zululand Energy Terminal at Richards Bay is positioned as South Africa's first LNG import facility and the anchor of a new gas supply architecture. Developed as a joint venture between Vopak Terminal Durban and Transnet Pipelines, the terminal will provide import, storage, regasification, and distribution infrastructure for both power generation and industrial users. ExxonMobil signed a Heads of Agreement in June 2026 to supply LNG to the terminal, signalling international market confidence. Eskom has assumed foundation customer status, underpinning a planned 3,000 MW gas-to-power programme in Richards Bay.
• The Lilly Pipeline is being repurposed from a methane carrier into a regasified LNG transmission backbone. Transnet Pipelines is undertaking a prefeasibility study for a 576-kilometre upgrade, reversing the flow direction from Empangeni to Secunda. A new 24-inch, 80 barg pipeline will connect the ZET terminal to the Lilly system at Empangeni. Once complete, regasified LNG will flow inland to industrial customers in KwaZulu-Natal, Gauteng, and Mpumalanga, replacing declining Mozambican supply.
• Onshore gas development is advancing independently of LNG imports. Kinetiko Energy launched a Rolling Cluster Development Strategy targeting first commercial gas revenue in Q2/Q3 2027 from a 6.0 trillion cubic feet resource. The staged plan progresses from compressed natural gas production at the Brakfontein cluster to full-field LNG across the broader tenement package. Existing wells have demonstrated methane purity exceeding 98%, supporting both CNG and LNG commercialisation pathways.

Market Outlook

• Pipeline repurposing will be the single largest equipment opportunity. The ZET-to-Empangeni pipeline connection requires 24-inch, 80 barg transmission infrastructure with valve stations and pigging facilities. The broader Lilly Pipeline upgrade includes compression, metering, and integrity management systems across 576 kilometres. Transnet National Ports Authority has appointed Vopak and Transnet Pipelines as preferred bidder for the terminal, with commercial operation targeted for 2027, though Vopak has deferred its final investment decision to early 2028 pending progress on Eskom's gas-to-power programme.
• Gas-to-power procurement is creating demand for turbine and fuel-gas equipment. The Integrated Resource Plan 2025 calls for 6,000 MW of gas-fired generation by 2030, split equally between the Gas IPP programme and Eskom's own build. Eskom's Richards Bay Gas-to-Power Project will be constructed in the RBIDZ, but its environmental authorisation was set aside by the Supreme Court of Appeal in September 2025, requiring the process to restart. Siemens Energy has noted that gas turbine shortages reflect strong market interest, and government-backed payment guarantees to the Zululand Terminal are seen as critical to enabling a final investment decision.
• CNG and onshore gas development are creating a decentralised equipment market. Kinetiko Energy's Phase 1 Brakfontein CNG cluster uses existing test wells and mobile infrastructure, with regulatory filings, equipment procurement, and civil works scheduled through 2026 ahead of first deliveries in 2027. The company has entered a binding Joint Development Agreement with FFS Refiners to co-develop Phase Alpha LNG. This capital-efficient, staged approach contrasts with large-scale LNG import projects and favours modular equipment suppliers.

Policies & Regulatory Landscape

• The Gas Bill (B6 2026) has been introduced to Parliament and would expand NERSA's regulatory oversight to cover LNG and emerging low-carbon and renewable gases. NERSA supports provisions that would allow it to set maximum gas prices, regulate distribution tariffs, and extend mandatory third-party access to distribution pipelines and LNG regasification facilities. However, industry participants have warned that the Bill risks discouraging investment in LNG infrastructure and granting the Minister broad powers over licensing, pricing, and approval of new gas facilities.
• NERSA has approved maximum gas prices for Sasol Gas for 2026/27 and 2027/28, setting end-user prices at R97.31 per gigajoule and trader prices at R92.44 per gigajoule, effective from July 2026. The regulator has stated that the pricing framework is intended to provide regulatory certainty during the transition while ensuring costs recovered through regulated prices remain supported by actual gas acquisition costs.
• South Africa's hydrogen policy framework includes the Hydrogen Society Roadmap, the Green Hydrogen Commercialisation Strategy, and the Just Energy Transition framework. The country positions green hydrogen as part of its broader energy transition and industrial development strategy, leveraging renewable energy resources and critical mineral reserves. The Africa Green Hydrogen Summit 2026, hosted in Cape Town, focuses on moving projects from development into financing, construction, and commercial deployment.

Gas Equipment Procurement & Industry Impact

• International equipment suppliers and terminal operators are securing strategic positions. Vopak's appointment as preferred bidder for the ZET terminal brings 78 terminals across 23 countries of operational experience. ExxonMobil's Heads of Agreement supports the development of infrastructure required to establish a new gas import platform. Transnet Pipelines, established in 1965, remains the custodian of the country's strategic pipeline assets and will handle gas transmission from the terminal to inland markets.
• The National EPC Champion concept is not yet a factor in South Africa's gas sector, unlike in Saudi Arabia. However, Transnet's role as the state-owned pipeline operator means that procurement will follow public-sector processes, with local content requirements and enterprise development criteria. The MoU with RBIDZ includes a gas custody transfer station to distribute regasified LNG to transmission pipelines and industrial users, creating procurement opportunities for metering, regulation, and custody transfer equipment.
• Replacement demand is substantial across South Africa's mature gas infrastructure. The Lilly Pipeline has been in service for decades and is being repurposed for a fundamentally different flow regime, requiring inspection, materials assessment, valve replacement, and compressor modifications. Sasol's announcement of a temporary methane-rich gas bridging solution from July 2028 to June 2030 provides additional time for the transition but does not eliminate the need for LNG import infrastructure.

Industry News

• In June 2026, the Zululand Energy Terminal entered into a Heads of Agreement with ExxonMobil South Africa LNG for the development of South Africa's first LNG import terminal at the Port of Richards Bay, providing infrastructure for importation, storage, regasification, and distribution to power generation and industrial consumers.
• In June 2026, Eskom signed a Heads of Agreement with ZET to establish a long-term strategic partnership, assuming foundation customer status and securing access to LNG import, storage, and regasification infrastructure for its planned 3,000 MW gas-to-power programme.
• In March 2026, Vopak South Africa and Transnet Pipelines signed a memorandum of understanding with the Richards Bay Industrial Development Zone to advance gas development in KwaZulu-Natal, including a gas custody transfer station to distribute regasified LNG to transmission pipelines and industrial users.
• In April 2026, Kinetiko Energy unveiled its Rolling Cluster Development Strategy targeting first gas revenue in Q2/Q3 2027, progressing from CNG at Brakfontein to full-field LNG, with methane purity exceeding 98% from existing test wells.
• In August 2026, South Africa's Green Hydrogen Fund secured an initial ZAR 3 billion to finance a pipeline of green hydrogen and related projects, targeting a final close of ZAR 12 billion by mid-2028.

Segment Analysis

Gas Equipment By Equipment
• Gas Delivery Systems in South Africa connect LNG import terminals, transmission pipelines, distribution networks, and industrial facilities. Equipment selection must account for the repurposing of the Lilly Pipeline for regasified LNG flow from Empangeni to Secunda and Durban. The ZET-to-Empangeni pipeline requires 24-inch, 80 barg transmission infrastructure with associated above-ground facilities. The staged nature of South Africa's gas market transition creates demand for delivery systems that can handle both conventional methane and regasified LNG.
• Gas Regulators control pressure across transmission pipelines, distribution networks, and industrial facilities. South African buyers evaluate inlet and outlet pressure, flow capacity, gas composition, and response characteristics. The repurposing of the Lilly Pipeline for regasified LNG, which has different thermodynamic properties from pipeline gas, will require regulator systems capable of handling changing flow regimes. Biogas injection and hydrogen blending introduce additional requirements around seals and material compatibility.
• Flow Devices include meters, valves, flow-control equipment, and automation systems. Accurate measurement is critical for custody transfer, pipeline balancing, and industrial supply. The ZET terminal's gas custody transfer station will require advanced metering and control systems. The reverse flow of the Lilly Pipeline necessitates new metering arrangements at Empangeni and Secunda. The reverse flow of the Lilly Pipeline necessitates new metering arrangements at Empangeni and Secunda.
Gas Equipment By End-Use Sector
• Oil and Gas remains the dominant end-use sector, encompassing offshore production from the Pande-Temane fields, onshore gas development at Brakfontein, transmission, LNG import, and distribution. The sector's equipment requirements are increasingly focused on replacing declining Mozambican supply with LNG imports and domestic onshore gas. The shift from Sasol as primary supplier to a competitive market with multiple sources is reshaping procurement relationships and technical specifications.
• Chemical and Petrochemical facilities use natural gas for feedstock, process heat, and refining. South Africa's industrial clusters in Secunda, Sasolburg, and Durban represent major gas consumers requiring reliable high-pressure supply. Sasol's temporary methane-rich gas supply from Secunda from July 2028 to June 2030 will provide bridging volumes, but industrial users will need to adapt equipment for changing gas quality and composition. This creates demand for gas-conditioning, compression, and measurement equipment at industrial delivery points.
• Power Generation remains a major gas-equipment application. The IRP 2025 calls for 6,000 MW of gas-fired generation by 2030, with 3,000 MW from the Gas IPP programme and 3,000 MW from Eskom. Gas-fired generation provides flexibility for balancing a power system with growing renewable capacity. Equipment includes fuel-gas skids, filters, regulators, meters, valves, emergency shutdown systems, and combustion controls. The gas-to-power programme is explicitly positioned as a complement to renewable energy integration.
Gas Equipment By Process
• Generation in South Africa encompasses offshore gas production from Pande-Temane, onshore gas development from the Karoo, LNG regasification, and emerging biogas and hydrogen production. Kinetiko's Brakfontein wells have demonstrated methane purity exceeding 98%, facilitating both CNG and LNG commercialisation. Equipment requirements include compressors, separators, purifiers, valves, controls, meters, analysers, and detection systems for both conventional and emerging gas production pathways.
• Storage covers LNG storage, linepack, and emerging biogas buffer storage. The ZET terminal will provide LNG import, storage, and regasification infrastructure. The Lilly Pipeline repurposing project will utilise linepack for supply flexibility. Equipment demand includes cryogenic pumps, valves, pressure-control systems, meters, and monitoring technologies for LNG storage and regasification, with hydrogen storage potentially introducing additional requirements as the technology develops.

Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031



Aspects covered in this report
• Gas Equipment with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Equipment
• Gas Delivery Systems
• Gas Regulators
• Flow Devices
• Purifiers & Filters
• Gas-Generating Systems
• Gas Detection Systems
• Cryogenic Products
• Accessories

By End-Use Sector
• Metal Fabrication & Metalworking
• Chemical & Petrochemical
• Healthcare & Medical
• Oil & Gas
• Food & Beverage
• Automotive & Transportation
• Electronics & Semiconductors
• Others



By Process
• Generation
• Storage
• Transportation & Distribution
• Detection