Eskom and Sasol Have Signed A Gas MoU Document
Eskom and Sasol Have Signed A Gas MoU Document
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 possible potential liquified natural gas (LNG) requirements".
This is according to a joint statement by the two organizations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the possible volumes that South Africa necessitates to ascertain a viable LNG import current market, together with the enabling infrastructure, and may be facilitated by federal government-to-govt relations where necessary."
"This initiative focuses on applying fuel for electric power generation to offer necessary base load energy and position gas as a critical enabler of re-industrialisation, although also ensuring ongoing supply to the marketplace by unlocking world 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 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 get more info findings from the first phase of the Sasol-Eskom collaboration will guide the necessary role players click here 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.