Eskom and Sasol Have Signed A Gas-For-Power MoU Document
Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research potential future liquified natural gas (LNG) requirements".
This is based on a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the possible volumes that South Africa involves to ascertain a practical LNG import market place, along with the enabling infrastructure, and can be facilitated by governing administration-to-federal government relations where needed."
"This initiative concentrates on making use of gasoline for power generation to supply necessary base load electricity and position gas for a vital enabler of re-industrialisation, whilst also making certain 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 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 click here 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 sasol vacancies 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.