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 company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and investigate potential long term liquified natural gas (LNG) requirements".
That is according to a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the potential volumes that South Africa necessitates to establish a viable LNG import market place, together with the enabling infrastructure, and may be facilitated by govt-to-governing administration relations exactly where needed."
"This initiative concentrates on working with gasoline for electricity generation to offer vital base load energy and position gas to be a vital enabler of re-industrialisation, when also guaranteeing continued supply to the industry by unlocking world wide LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix sasol learnerships 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 website 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 get more info the long-term commitments required for LNG imports," the statement said.