South Africa has proposed to purchase liquefied natural gas (LNG) from the United States as part of a trade agreement that would allow the African country to be exempt from paying duties on vehicle exports to the US in exchange.
The announcement was made by Minister to the Presidency Khumbudzo Ntshavheni, and the government news agency released the statement on Sunday evening.
“SA will import 75 – 100 PJ (petajoules) annually for a decade of LNG gas from the US, which will generate approximately $900 million to $1.2 billion in trade each year and between US$9 billion and US$12 billion over ten years, depending on the applicable price,” a portion of the statement indicated.
Although the United States has not yet made a decision regarding the acceptance or rejection of the deal, it could serve as a way for Pretoria to safeguard its faltering economy and somewhat mend relations with Washington, which are currently at a low point.
The automotive sector and vehicle exports play a crucial role in South Africa’s economy, accounting for about 5% of its GDP.
Previously, US President Trump had threatened South Africa with 30% tariffs on its exports to the US.
