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 organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research potential long term liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two companies, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the potential volumes that South Africa needs to ascertain a practical LNG import current market, together with the enabling infrastructure, and can be facilitated by federal government-to-government relations where necessary."
"This initiative concentrates on utilizing fuel for ability generation to deliver necessary base load electricity and position gas for a crucial enabler of re-industrialisation, while also ensuring ongoing supply to the industry 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 click here sourcing gas within South Africa, the Southern African Development Community region, and other parts of the African continent, in addition to sasol vacancies evaluating 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 sasol vacancies 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.