Eskom and Sasol Have Signed A Gas MoU Document
Eskom and Sasol Have Signed A Gas MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research prospective long term liquified natural gas (LNG) requirements".
This is according to a joint statement by the two providers, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the likely volumes that South Africa calls for to establish a practical LNG import market place, together with the enabling infrastructure, and will be facilitated by governing administration-to-government relations exactly where needed."
"This initiative concentrates on working with fuel for power generation to provide crucial base load energy and position gas as a crucial enabler of re-industrialisation, although also making certain continued supply to the marketplace by unlocking international LNG resources.
"Furthermore, the collaboration will read more 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 check here Southern African Development Community region, and other parts of the African continent, in addition sasol vacancies 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 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.