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 business, 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 companies, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the possible volumes that South Africa necessitates to establish a viable LNG import current market, along with the enabling infrastructure, and will be facilitated by governing administration-to-government relations in which needed."
"This initiative concentrates on working with fuel for ability generation to deliver critical base load electrical energy and position gas like a crucial enabler of re-industrialisation, whilst also ensuring ongoing supply to the marketplace get more info by unlocking worldwide 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 sasol bursaries 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 role players and investors required to offer the best more info prospects for South Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.