Eskom and Sasol Have Signed A Gas MoU Arrangement
Eskom and Sasol Have Signed A Gas MoU Arrangement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and investigate possible long term liquified natural gas (LNG) requirements".
This can be based on 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 place, combined with the enabling infrastructure, and will be facilitated by govt-to-federal government relations exactly where required."
"This initiative focuses on applying gasoline for energy generation to offer crucial base load electricity and position gas to be a critical enabler of re-industrialisation, although also making sure ongoing supply to the marketplace by unlocking global 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 sasol 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 check here 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 Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG website imports," the statement said.