Eskom and Sasol Have Signed A Gas MoU Document
Eskom and Sasol Have Signed A Gas MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study prospective future liquified natural gas (LNG) requirements".
This is based on a joint statement by the two providers, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the prospective volumes that South Africa calls for to determine a practical LNG import market place, along with the enabling infrastructure, and can be facilitated by authorities-to-authorities relations wherever necessary."
"This initiative focuses on utilizing gasoline for electricity generation to offer necessary base load electrical energy and position gas to be a crucial enabler of re-industrialisation, even though also ensuring ongoing supply to the industry by unlocking world wide 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, check here existing and future customers, suppliers, and infrastructure developers.
"The research findings from click here 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.