Eskom and Sasol Have Signed A Gas-For-Fuel MoU Agreement
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Agreement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research potential future liquified natural gas (LNG) requirements".
This is based on a joint statement by the two companies, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the prospective volumes that South Africa necessitates to establish a practical LNG import sector, combined with the enabling infrastructure, and can be facilitated by govt-to-federal government relations in which required."
"This initiative concentrates on working with gas for electric power generation to provide essential base load electricity and position gas to be a essential enabler of re-industrialisation, whilst also making sure continued supply to the marketplace by unlocking worldwide LNG resources.
"Furthermore, the collaboration will check here 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 get more info to "explore sourcing gas within South Africa, the Southern African Development Community region, and other parts of the African continent, in click here 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 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.