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 organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research possible future liquified natural gas (LNG) requirements".
This is based on a joint statement by the two providers, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the potential volumes that South Africa demands to ascertain a practical LNG import industry, together with the enabling infrastructure, and will be facilitated by authorities-to-govt relations exactly where necessary."
"This initiative focuses on applying fuel for energy generation to supply critical base load electrical energy and position gas for a critical enabler of re-industrialisation, whilst also guaranteeing ongoing supply to the market by unlocking international LNG resources.
"Furthermore, the collaboration click here 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 here 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.