DocumentOngoingPublication

May2026RegulatoryExplanatoryNoteontheuseofcost PlusmethodforLNGimports

National Energy Regulator of South AfricaRef: https://www.nersa.org.za/file/9001/May2026RegulatoryExplanatoryNoteontheuseofcost-plusmethodforLNGimports.pdf

Official source

Source domain: nersa.org.za

Collected on 1 September 2026

Always confirm details on the official source before acting.

What this means

This document is a regulatory explanatory note issued by the National Energy Regulator of South Africa (NERSA) clarifying that LNG importers may use the cost-plus methodology to determine maximum prices for their imports. It confirms that NERSA has discretion to allow deviations from the standard pricing methodology to support the Gas IPP Procurement Programme BW1 and enhance the bankability of LNG-to-power projects. The opportunity is ongoing and applies to all LNG importers in South Africa.

What this document offers

Read out of this document by Govermate's AI, in its own words. Each one quotes the line it came from — confirm on the official source before acting.

pricing method availabilityOngoing

Use of cost-plus methodology for LNG imports

LNG importers may apply the cost-plus methodology to determine the maximum price for their imports, as permitted by this regulatory note. This allows recovery of efficient and prudently incurred costs and a profit commensurate with risk, supporting bankability and regulatory predictability for LNG-to-power projects.

Who it is for: LNG importers in South Africa
How to act on it: No formal application required; the opportunity is available by default under the regulatory framework outlined in this note.

Show the line this came from

This Regulatory Explanatory Note provides clarity that the Cost-plus option contained in the Methodology to Approve Maximum Prices of Piped-Gas (“Maximum Price Methodology”) may also be used by importers of LNG.

Facts

Reference

https://www.nersa.org.za/file/9001/May2026RegulatoryExplanatoryNoteontheuseofcost-plusmethodforLNGimports.pdf

Key Takeaways

Cost-plus methodology
LNG importers
Maximum Price Methodology
Gas IPP Procurement Programme BW1
NERSA
May 2026
regulatory deviation
bankability of LNG-to-power projects
National Energy Regulator of South Africa
IPP Office
Gas Act, 2001
Piped-Gas Regulations, 2007
National Energy Regulator of South Africa and Another v PG Group (Pty) Limited and Others 2019 ZACC 28
Japanese Korean Marker (JKM)
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