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 investigate and study prospective long term liquified natural gas (LNG) requirements".
That is based on a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the potential volumes that South Africa calls for to ascertain a viable LNG import market, along with the enabling infrastructure, and will be facilitated by authorities-to-federal government relations where by important."
"This initiative focuses on applying gas for electric power generation to provide crucial base load electricity and position gas being a key enabler of re-industrialisation, even though also ensuring continued supply to the industry 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 here other parts of the African continent, in addition to evaluating long-term LNG contracting".
"This will support the gas requirements for Eskom’s planned eskom coal power station repowering and 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 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.