Eskom and Sasol Have Signed A Gas MoU Arrangement
Eskom and Sasol Have Signed A Gas 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 study prospective potential liquified natural gas (LNG) requirements".
This is according to a joint statement by the two corporations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the possible volumes that South Africa necessitates to determine a practical LNG import market, along with the enabling infrastructure, and will be facilitated by governing administration-to-government relations exactly where required."
"This initiative focuses on utilizing gas for energy generation to provide important base load electrical power and position gas being a crucial enabler of re-industrialisation, although also guaranteeing continued supply to the market by unlocking international LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy 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 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 sasol bursaries prospects for South Africa's energy market, while outlining the challenges more info associated with the long-term commitments required for LNG imports," the statement said.