Eskom and Sasol Have Signed A Gas-For-Power MoU Arrangement
Eskom and Sasol Have Signed A Gas-For-Power MoU Arrangement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research possible future liquified natural gas (LNG) requirements".
This is based on a joint statement by the two corporations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the possible volumes that South Africa demands to establish a feasible LNG import marketplace, together with the enabling infrastructure, and may be facilitated by authorities-to-federal government relations where by important."
"This initiative focuses on using fuel for electricity generation to provide critical base load energy and position gas being a important enabler of re-industrialisation, even though also making certain continued supply to the industry by unlocking worldwide LNG resources.
"Furthermore, the sasol careers collaboration will contribute to enhancing South Africa’s energy click here mix and enable the country's energy transition and decarbonisation," the joint statement read.
The MoU is expected to "explore sourcing gas within South Africa, the Southern click here African Development Community region, and other parts of the African continent, in addition to evaluating long-term LNG contracting".
"This will support the gas requirements for Eskom’s planned coal power station repowering and conversion to gas in the long term. The parties will also engage other state entities to enable an LNG value chain in South Africa.
"As part of its revised gas strategy, Sasol is working on enabling the future supply of LNG to South Africa by collaborating with companies such as Eskom, existing and future customers, suppliers, and infrastructure developers.
"The research findings from the first phase of the Sasol-Eskom collaboration will guide the necessary role players and investors required to offer the best prospects for South Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.