Eskom and Sasol Have Signed A Gas-For-Power MoU Arrangement
Eskom and Sasol Have Signed A Gas-For-Power MoU Arrangement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research possible future liquified natural gas (LNG) requirements".
That is according to a joint statement by the two businesses, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the potential volumes that South Africa necessitates to ascertain a feasible LNG import marketplace, along with the enabling infrastructure, and will be facilitated by authorities-to-federal government relations where required."
"This initiative concentrates on applying fuel for energy generation to provide crucial base load energy and position gas as a important enabler of re-industrialisation, although also making certain continued supply to the industry by unlocking world LNG resources.
"Furthermore, the collaboration eskom learnerships 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 eskom 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 sasol vacancies 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.