Eskom and Sasol Have Signed A Gas MoU Document
Eskom and Sasol Have Signed A Gas MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research possible long term liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two corporations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the prospective volumes that South Africa requires to determine a viable LNG import market place, along with the enabling infrastructure, and will be facilitated by authorities-to-federal government relations wherever vital."
"This initiative concentrates on applying gas for electricity generation to offer vital base load electricity and position gas like a essential enabler of re-industrialisation, although also ensuring ongoing supply to the marketplace by unlocking international LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix more info 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 will guide the necessary sasol bursaries 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 check here required for LNG imports," the statement said.