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 company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and study possible future liquified natural gas (LNG) requirements".
This is based on a joint statement by the two providers, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the potential volumes that South Africa necessitates to determine a feasible LNG import marketplace, together with the enabling infrastructure, and can be facilitated by authorities-to-governing administration relations wherever needed."
"This initiative focuses on working with gasoline for power generation to offer important base load electricity and position gas to be a essential enabler of re-industrialisation, whilst also guaranteeing continued 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 more info 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 eskom careers 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 eskom careers 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.