Eskom and Sasol Have Signed A Gas MoU Document
Eskom and Sasol Have Signed A Gas MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study possible potential liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two providers, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the probable volumes that South Africa needs to determine a viable LNG import industry, together with the enabling infrastructure, and will be facilitated by government-to-federal government relations where by required."
"This initiative concentrates on applying gas for electricity generation to deliver essential base load electrical power and position gas to be a crucial enabler of re-industrialisation, even though also ensuring ongoing supply to the industry by unlocking worldwide LNG resources.
"Furthermore, the collaboration get more info will contribute to enhancing South Africa’s energy mix check here 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, eskom learnerships 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.