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 company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research possible potential liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two companies, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the possible volumes that South Africa requires to establish a feasible LNG import market place, together with the enabling infrastructure, and will be facilitated by government-to-authorities relations the place vital."
"This initiative concentrates on applying gas for power generation to offer vital base load electricity and position gas being a crucial enabler of re-industrialisation, while also ensuring continued supply to the market by unlocking global 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 sasol learnerships LNG to South Africa by collaborating with companies such as Eskom, existing and future customers, suppliers, and infrastructure eskom learnerships 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 eskom South Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.