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 business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate prospective long term liquified natural gas (LNG) requirements".
That is based on a joint statement by the two organizations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the potential volumes that South Africa needs to establish a practical LNG import current market, combined with the enabling infrastructure, and will be facilitated by federal government-to-authorities relations exactly where necessary."
"This initiative concentrates on making use of fuel for electric power generation to supply essential base load electricity and position gas for a crucial enabler of re-industrialisation, while also guaranteeing continued supply to the marketplace 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 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 sasol 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 sasol learnerships infrastructure developers.
"The research findings from the first phase check here 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.