Eskom and Sasol Have Signed A Gas-For-Fuel MoU Document
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study potential future liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two businesses, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the potential volumes that South Africa necessitates to establish a viable LNG import market place, together with the enabling infrastructure, and may be facilitated by govt-to-governing administration relations in which important."
"This initiative concentrates on using gas for electrical power generation to offer important base load electrical energy and position gas to be a crucial enabler of re-industrialisation, though also making sure continued 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 sasol bursaries 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 sasol 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 eskom learnerships 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.