Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement
Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate prospective potential liquified natural gas (LNG) requirements".
This is according to a joint statement by the two corporations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the potential volumes that South Africa calls for to ascertain a viable LNG import industry, combined with the enabling infrastructure, and will be facilitated by governing administration-to-governing administration relations where by vital."
"This initiative focuses on utilizing fuel for electric power generation to supply important base load electrical energy and position gas to be a essential enabler of re-industrialisation, whilst also making sure continued supply to the marketplace by unlocking international LNG sasol resources.
"Furthermore, the collaboration will contribute more info 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 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 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.