Eskom and Sasol Have Signed A Gas MoU Arrangement
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and investigate prospective future liquified natural gas (LNG) requirements".
That is according to a joint statement by the two organizations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the probable volumes that South Africa involves to ascertain a practical LNG import current market, combined with the enabling infrastructure, and can be facilitated by government-to-govt relations where important."
"This initiative concentrates on utilizing gasoline for ability generation to provide crucial base load electricity and position gas like a critical enabler of re-industrialisation, whilst also making certain ongoing supply to the marketplace by unlocking world 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 get more info other state entities to enable an LNG value chain in South Africa.
"As read more 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 energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.