Eskom and Sasol Have Signed A Gas-For-Fuel MoU Arrangement
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Arrangement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research potential future liquified natural gas (LNG) requirements".
That is based on a joint statement by the two companies, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the possible volumes that South Africa involves to ascertain a feasible LNG import industry, combined with the enabling infrastructure, and will be facilitated by federal government-to-federal government relations in which essential."
"This initiative concentrates on employing gas for power generation to offer crucial base load electrical power and position gas as being a vital enabler of re-industrialisation, even though also ensuring continued supply to the market by unlocking world wide LNG resources.
"Furthermore, the collaboration will contribute sasol to enhancing South Africa’s energy get more info 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 sasol careers 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.