Eskom and Sasol Have Signed A Gas MoU Document
Eskom and Sasol Have Signed A Gas MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and investigate potential future liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two corporations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the prospective volumes that South Africa requires to establish a viable LNG import industry, together with the enabling infrastructure, and may be facilitated by govt-to-governing administration relations where essential."
"This initiative focuses on utilizing gas for energy generation to provide important base load electrical power and position gas being a critical enabler of re-industrialisation, though also making sure ongoing 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 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 future supply of LNG to website 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 sasol 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.