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 company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research possible future liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two businesses, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the probable volumes that South Africa requires to determine a practical LNG import marketplace, together with the enabling infrastructure, and can be facilitated by authorities-to-authorities relations where vital."
"This initiative focuses on using fuel for electrical power generation to deliver vital base load electrical power and position gas as a critical enabler of re-industrialisation, although also making certain continued supply to the marketplace by unlocking international 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 read more 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 click here will click here 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.