Eskom and Sasol Have Signed A Gas-For-Power MoU Document
Eskom and Sasol Have Signed A Gas-For-Power MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate prospective potential liquified natural gas (LNG) requirements".
This is based on a joint statement by the two firms, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the likely volumes that South Africa requires to establish a practical LNG import market place, combined with the enabling infrastructure, and may be facilitated by federal government-to-authorities relations exactly where essential."
"This initiative concentrates on working with gasoline for electrical power generation to provide essential base load electrical energy and position gas to be a essential enabler of re-industrialisation, whilst also guaranteeing ongoing supply to the market 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 website 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 sasol term. The parties will also engage other state entities to enable an LNG value chain in sasol 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.