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 company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and study possible potential liquified natural gas (LNG) requirements".
This is according to a joint statement by the two corporations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the possible volumes that South Africa involves to determine a practical LNG import sector, along with the enabling infrastructure, and may be facilitated by federal government-to-govt relations the place important."
"This initiative focuses on making use of gas for power generation to deliver necessary base load electric power and position gas for a crucial enabler of re-industrialisation, whilst also making sure continued supply to the industry 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 sasol will support the gas requirements for Eskom’s planned coal power station repowering and conversion to gas in the long term. eskom 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 read more 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.