Eskom and Sasol Have Signed A Gas-For-Power MoU Document
Eskom and Sasol Have Signed A Gas-For-Power MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate potential long term 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 possible volumes that South Africa requires to ascertain a feasible LNG import marketplace, combined with the enabling infrastructure, and may be facilitated by governing administration-to-authorities relations wherever necessary."
"This initiative focuses on making use of gasoline for electric power generation to deliver critical base load electrical power and position gas being a critical enabler of re-industrialisation, when also guaranteeing continued supply to the market by unlocking international LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the country's eskom 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 get more info 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, 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 website 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.