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 organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research possible potential liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two firms, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the probable volumes that South Africa needs to determine a practical LNG import marketplace, combined with the enabling infrastructure, and can be facilitated by federal government-to-governing administration relations where essential."
"This initiative focuses on utilizing gas for energy generation to provide essential base load electrical energy and position gas like a important enabler of re-industrialisation, while also making sure continued supply to the market by unlocking world 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 sasol learnerships 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 parties will also engage other state entities to enable an LNG value chain in South Africa.
"As part of its revised gas strategy, eskom careers Sasol is working on enabling the future supply of LNG to South Africa by collaborating with companies such as Eskom, eskom learnerships 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.