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 company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate potential potential liquified natural gas (LNG) requirements".
That is according to a joint statement by the two organizations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the prospective volumes that South Africa needs to establish a practical LNG import market place, along with the enabling infrastructure, and will be facilitated by federal government-to-government relations wherever important."
"This initiative focuses on employing fuel for energy generation to supply vital base load electrical energy and position gas for a essential enabler of re-industrialisation, while also guaranteeing ongoing supply to the market by unlocking world wide 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, more info suppliers, and infrastructure developers.
"The research eskom 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 check here with the long-term commitments required for LNG imports," the statement said.