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 explore and research potential long term liquified natural gas (LNG) requirements".
That is according to a joint statement by the two firms, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the possible volumes that South Africa needs to ascertain a viable LNG import marketplace, combined with the enabling infrastructure, and will be facilitated by governing administration-to-governing administration relations where by vital."
"This initiative concentrates on making use of fuel for energy generation to deliver crucial base load electrical power and position gas as a essential enabler of re-industrialisation, though also making certain ongoing supply to the marketplace by unlocking world-wide 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 website 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 sasol vacancies coal power station repowering and conversion to gas in the long term. The sasol 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.