Eskom and Sasol Have Signed A Gas-For-Power MoU Arrangement
Eskom and Sasol Have Signed A Gas-For-Power MoU Arrangement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and study prospective future liquified natural gas (LNG) requirements".
This is according to a joint statement by the two organizations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the likely volumes that South Africa calls for to determine a practical LNG import industry, combined with the enabling infrastructure, and may be facilitated by federal government-to-governing administration relations exactly where required."
"This initiative focuses on employing gasoline for electric power generation to offer necessary base load electricity and position gas as being a key enabler of re-industrialisation, while also ensuring ongoing supply to the marketplace by unlocking worldwide 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 sasol learnerships of the African continent, in addition to evaluating long-term LNG more info 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 role players and eskom 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.