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 organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate potential future liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two companies, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the prospective volumes that South Africa necessitates to determine a feasible LNG import current market, together with the enabling infrastructure, and may be facilitated by governing administration-to-authorities relations in which needed."
"This initiative focuses on utilizing gas for power generation to deliver necessary base load energy and position gas for a essential enabler of re-industrialisation, although also making sure continued supply to the industry by unlocking worldwide LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s website 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 website 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, sasol 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.