(Ecofin Agency) - South Africa’s ruling African National Congress (ANC) has advised the government to approve strategic changes to laws for the oil and gas industry to in order to help speed up development and put an end to power shortages.

President Jacob Zuma had in January this year sent changes to the 2002 Mineral and Petroleum Resources Development Act back to parliament due to concerns that the amendments weren’t in line with the constitution. The bill included proposals to give the state a free 20 % stake in all new oil and natural-gas projects and the option to buy an undetermined additional share at an “agreed price.”

The country has the capacity to install as much as 20 gigawatts of gas-fired plants by 2030 to reduce reliance on coal-based generation, Enoch Godongwana, chairman of the ANC’s economic transformation committee, told Bloomberg.

While Eskom Holdings SOC Ltd., the state-owned power utility, is building new capacity to alleviate current shortages, more shortfalls are expected between 2025 and 2030, Godongwana said. “While we see the potential for oil and gas discoveries in our country, none of this is proven until the companies commit risk capital to drill exploration wells,” Godongwana stated. “This will not happen if there is no enabling environment.”

South Africa’s GDP dropped for the first time in more than a year in Q2, declining an annualized 1.3 % as the economy struggles with power constraints and a slump in prices of platinum, copper and other commodities. “South Africa’s electricity shortages continue to constrain growth,” Godongwana said. “The potential oil and gas discoveries present the democratic government with a unique and historic opportunity.” He added.