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 enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and study prospective future liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two providers, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the likely volumes that South Africa demands to ascertain a feasible LNG import market place, together with the enabling infrastructure, and can be facilitated by authorities-to-federal government relations the place needed."
"This initiative focuses on employing gas for electrical power generation to provide essential base load electricity and position gas as a vital enabler of re-industrialisation, even though also making certain ongoing supply to the market by unlocking world LNG resources.
"Furthermore, the collaboration sasol vacancies 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 findings from the first phase of the Sasol-Eskom collaboration will guide the necessary more info 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.