Eskom and Sasol Have Signed A Gas-For-Power MoU Document
Eskom and Sasol Have Signed A Gas-For-Power MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research prospective future liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two providers, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the probable volumes that South Africa involves to establish a viable LNG import market place, together with the enabling infrastructure, and may be facilitated by govt-to-government relations in which needed."
"This initiative focuses on utilizing fuel for electricity generation to provide critical base load energy and position gas for a essential enabler of re-industrialisation, although also making sure ongoing supply to the industry by unlocking world wide LNG resources.
"Furthermore, the collaboration more info 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 eskom 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 eskom Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.