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 research potential potential liquified natural gas (LNG) requirements".
This can be according to 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 needs to establish a practical LNG import current market, combined with the enabling infrastructure, and will be facilitated by federal government-to-authorities relations exactly where vital."
"This initiative concentrates on making use of gas for energy generation to offer essential base load electricity and position gas for a key enabler of re-industrialisation, when also ensuring ongoing supply to the industry by unlocking world-wide LNG resources.
"Furthermore, the eskom collaboration will contribute to enhancing South Africa’s energy mix and enable the country's energy transition sasol 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 read more 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.