Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement
Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research possible long term liquified natural gas (LNG) requirements".
That is based on a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the potential volumes that South Africa calls for to establish a viable LNG import marketplace, along with the enabling infrastructure, and will be facilitated by govt-to-government relations exactly where important."
"This initiative focuses on making use of gas for power generation to deliver important base load electrical energy and position gas being a vital enabler of re-industrialisation, even though also ensuring ongoing supply to the marketplace by unlocking international LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the here 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 website of the African continent, in addition to evaluating long-term LNG contracting".
"This will support the sasol bursaries 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.