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 discover and investigate possible future liquified natural gas (LNG) requirements".
That is based on a joint statement by the two firms, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the likely volumes that South Africa involves to establish a feasible LNG import marketplace, together with the enabling infrastructure, and will be facilitated by authorities-to-governing administration relations in which vital."
"This initiative focuses on employing fuel for energy generation to offer critical base load electric power and position gas as a important enabler of re-industrialisation, even though also guaranteeing ongoing supply to the industry by unlocking global LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the country's energy sasol 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 eskom careers chain in South Africa.
"As part of its revised gas strategy, eskom 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.