Eskom and Sasol Have Signed A Gas MoU Agreement
Eskom and Sasol Have Signed A Gas MoU Agreement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research prospective future liquified natural gas (LNG) requirements".
That is according to a joint statement by the two firms, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the possible volumes that South Africa needs to determine a feasible LNG import industry, together with the enabling infrastructure, and can be facilitated by federal government-to-govt relations in which vital."
"This initiative focuses on utilizing gas for electric power generation to offer essential base load electric power and position gas like a vital enabler of re-industrialisation, although also guaranteeing ongoing supply to the industry 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 here value chain in South Africa.
"As part of its revised gas strategy, Sasol is working on enabling the future supply of LNG to South more info 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.