Eskom and Sasol Have Signed A Gas-For-Fuel MoU Document
Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and study possible future liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two companies, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the likely volumes that South Africa necessitates to determine a viable LNG import current market, along with the enabling infrastructure, and can be facilitated by govt-to-authorities relations wherever important."
"This initiative focuses on applying gas for ability generation to supply vital base load electrical power and position gas like a key enabler of re-industrialisation, though also making certain continued supply to the marketplace by unlocking world 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 sasol within South Africa, the Southern African Development Community region, and other parts of the African continent, in addition to evaluating read more 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 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.