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 business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and investigate potential future liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two firms, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the prospective volumes that South Africa requires to establish a feasible LNG import current market, together with the enabling infrastructure, and may be facilitated by govt-to-govt relations wherever vital."
"This initiative concentrates on working with gasoline for electricity generation to supply important base load electrical energy and position gas as being a key enabler of re-industrialisation, though also guaranteeing continued supply to the marketplace by unlocking international 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 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 check here 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 sasol bursaries required for LNG imports," the statement said.