Eskom and Sasol Have Signed A Gas-For-Fuel MoU Agreement
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Agreement
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 long term liquified natural gas (LNG) requirements".
This is based on a joint statement by the two providers, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the potential volumes that South Africa necessitates to ascertain a practical LNG import marketplace, together with the enabling infrastructure, and will be facilitated by authorities-to-govt relations exactly where needed."
"This initiative concentrates on utilizing gasoline for ability generation to provide essential base load electrical power and position gas for a vital enabler of re-industrialisation, though 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 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 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 eskom learnerships will guide the necessary role players and investors required to offer the best prospects for South Africa's energy market, here while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.