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 company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and study prospective future liquified natural gas (LNG) requirements".
That is according to a joint statement by the two companies, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the likely volumes that South Africa needs to determine a feasible LNG import industry, along with the enabling infrastructure, and may be facilitated by authorities-to-government relations wherever required."
"This initiative concentrates on making use of fuel for power generation to supply critical base load electric power and position gas like a vital enabler of re-industrialisation, although also making sure continued supply to the market 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 check here 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 more info 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 website energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.