Eskom and Sasol Have Signed A Gas-For-Power MoU Arrangement
Eskom and Sasol Have Signed A Gas-For-Power MoU Arrangement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research potential future liquified natural gas (LNG) requirements".
This is based on a joint statement by the two firms, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the possible 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 where vital."
"This initiative focuses on utilizing fuel for electricity generation to supply critical base load energy and position gas being a important enabler of re-industrialisation, even though also making certain continued supply to the marketplace by unlocking world-wide LNG resources.
"Furthermore, the collaboration will contribute to click here 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 eskom learnerships 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 eskom vacancies 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.