Eskom and Sasol Have Signed A Gas-For-Power MoU Arrangement
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study possible future liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two companies, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the prospective volumes that South Africa necessitates to determine a feasible LNG import market, combined with the enabling infrastructure, and may be facilitated by government-to-govt relations where by vital."
"This initiative focuses on working with gasoline for energy generation to offer essential base load electricity and position gas for a crucial enabler of re-industrialisation, though also making certain ongoing supply to the market 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 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 click here 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 more info guide the necessary role players and investors required to offer the best eskom learnerships prospects for South Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.