Eskom and Sasol Have Signed A Gas-For-Power MoU Arrangement
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate possible future liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two companies, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the prospective volumes that South Africa needs to establish a practical LNG import current market, together with the enabling infrastructure, and can be facilitated by government-to-government relations where essential."
"This initiative concentrates on working with gasoline for electricity generation to supply essential base load energy and position gas like a key enabler of re-industrialisation, when also making certain ongoing supply to the marketplace by unlocking international 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 sasol careers is expected to "explore sourcing gas within South Africa, the Southern African Development Community region, and other parts of the African sasol 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 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.