Eskom and Sasol Have Signed A Gas MoU Agreement
Eskom and Sasol Have Signed A Gas MoU Agreement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate prospective future liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two organizations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the possible volumes that South Africa needs to establish a practical LNG import industry, along with the enabling infrastructure, and may be facilitated by govt-to-government relations where vital."
"This initiative focuses on using gasoline for energy generation to deliver vital base load electrical energy and position gas as a critical enabler of re-industrialisation, whilst also guaranteeing continued supply to the marketplace by unlocking global LNG resources.
"Furthermore, the collaboration will contribute get more info 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 read more 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 check here challenges associated with the long-term commitments required for LNG imports," the statement said.