Eskom and Sasol Have Signed A Gas MoU Arrangement
Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research prospective long term liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two firms, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the prospective volumes that South Africa requires to ascertain a feasible LNG import sector, combined with the enabling infrastructure, and will be facilitated by governing administration-to-federal government relations exactly where essential."
"This initiative focuses on utilizing fuel for power generation to provide crucial base load energy and position gas as being a crucial enabler of re-industrialisation, though also ensuring continued supply to the market by unlocking world-wide 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 sasol bursaries conversion to gas in the long term. The parties will also engage more info 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 eskom 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.