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 company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate potential potential liquified natural gas (LNG) requirements".
This is according to a joint statement by the two providers, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the potential volumes that South Africa necessitates to ascertain a feasible LNG import market, along with the enabling infrastructure, and can be facilitated by federal government-to-government relations in which important."
"This initiative concentrates on using gas for electrical power generation to offer necessary base load electrical energy and position gas being a essential enabler of re-industrialisation, even though also guaranteeing continued supply to the market by unlocking international 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 click here 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, eskom careers suppliers, and infrastructure developers.
"The research findings from the first phase of sasol learnerships 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.