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 enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate prospective potential liquified natural gas (LNG) requirements".
This is based on a joint statement by the two firms, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the likely volumes that South Africa requires to ascertain a viable LNG import current market, along with the enabling infrastructure, and can be facilitated by federal government-to-government relations the place necessary."
"This initiative focuses on working with fuel for electrical power generation to offer critical base load electrical power and position gas to be a vital enabler of re-industrialisation, whilst also guaranteeing ongoing supply to the industry by unlocking worldwide LNG resources.
"Furthermore, the collaboration will contribute sasol careers 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 eskom vacancies 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 sasol 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.