Eskom and Sasol Have Signed A Gas-For-Fuel MoU Document
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and investigate prospective potential liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two providers, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the likely volumes that South Africa needs to establish a feasible LNG import current market, together with the enabling infrastructure, and will be facilitated by govt-to-governing administration relations exactly where required."
"This initiative focuses on utilizing gas for energy generation to provide essential base load electrical energy and position gas as being a important enabler of re-industrialisation, whilst also making certain continued supply to the industry 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 eskom vacancies 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 more info 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 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.