Ardagh Group - comment
Political momentum is growing in South Africa to minimise the impact of gas price rises and loss of domestic supply after 2026. Political action is good news for Ardagh Group. SASOL will stop supplying natural gas in 2026, and LNG import terminals will not be ready until 2H27 (at least). The regulated price of R75 ($4) per GJ will disappear, with imported gas costing up to R225 ($12). Passing through these costs will crimp demand. (1GJ = 0.95 BTU)