Eskom and Sasol Have Signed A Gas MoU Agreement
Eskom and Sasol Have Signed A Gas MoU Agreement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and study prospective future liquified natural gas (LNG) requirements".
This is according to a joint statement by the two firms, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the probable volumes that South Africa requires to determine a feasible LNG import market, combined with the enabling infrastructure, and may be facilitated by govt-to-government relations the place essential."
"This initiative focuses on applying gas for electricity generation to offer necessary base load electricity and position gas as being a crucial enabler of re-industrialisation, even though also guaranteeing continued supply to the marketplace 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 sasol Africa, the Southern African Development Community region, and other parts of more info the African continent, in addition to evaluating long-term LNG contracting".
"This will support the gas requirements for Eskom’s click here 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.