Eskom and Sasol Have Signed A Gas MoU Agreement
Eskom and Sasol Have Signed A Gas MoU Agreement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and study possible future liquified natural gas (LNG) requirements".
This is according to a joint statement by the two firms, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the potential volumes that South Africa calls for to ascertain a feasible LNG import market place, together with the enabling infrastructure, and may be facilitated by federal government-to-federal government relations in which required."
"This initiative focuses on applying gasoline for power generation to offer crucial base load electrical power and position gas like a important enabler of re-industrialisation, while also making sure continued supply to the industry 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 get more info region, and other eskom vacancies 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 more info 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.