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 business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate prospective potential liquified natural gas (LNG) requirements".
This is according to a joint statement by the two companies, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the possible volumes that South Africa requires to establish a viable LNG import industry, along with the enabling infrastructure, and will be facilitated by governing administration-to-governing administration relations exactly where essential."
"This initiative focuses on employing gasoline for electric power generation to supply important base load electrical energy and position gas being a important enabler of re-industrialisation, when also ensuring continued supply to the industry 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 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 entities to enable an LNG value chain in South Africa.
"As part of its revised gas strategy, Sasol is working on enabling the more info 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 check here guide the necessary role players and investors required eskom vacancies 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.