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 business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and study prospective future liquified natural gas (LNG) requirements".
That is according to a joint statement by the two companies, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the possible volumes that South Africa necessitates to establish a feasible LNG import current market, along with the enabling infrastructure, and can be facilitated by federal government-to-governing administration relations where required."
"This initiative focuses on employing gasoline for electricity generation to offer vital base load energy and position gas as being a important enabler of re-industrialisation, while also making sure ongoing supply to the market by unlocking international 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 will support the gas requirements for Eskom’s planned coal power station repowering and conversion to gas in the long term. The click here parties will also engage other state entities to enable an LNG value chain in South Africa.
"As part of its revised gas strategy, more info Sasol is working on enabling the future supply of LNG to South Africa by collaborating more info 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.