Eskom and Sasol Have Signed A Gas-For-Fuel MoU Agreement
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Agreement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate prospective potential liquified natural gas (LNG) requirements".
That is based on a joint statement by the two providers, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the possible volumes that South Africa requires to ascertain a feasible LNG import market place, combined with the enabling infrastructure, and can be facilitated by governing administration-to-federal government relations exactly where vital."
"This initiative focuses on employing fuel for electrical power generation to offer vital base load electricity and position gas as a vital enabler of re-industrialisation, though also making sure continued supply to the market by unlocking global LNG resources.
"Furthermore, the collaboration will contribute to enhancing read more 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 sasol 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.