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 enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research potential future liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two organizations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the prospective volumes that South Africa needs to determine a feasible LNG import current market, combined with the enabling infrastructure, and may be facilitated by governing administration-to-govt relations wherever required."
"This initiative concentrates on utilizing gasoline for ability generation to supply vital base load electrical energy and position gas as a crucial enabler of re-industrialisation, when also making sure ongoing supply to the industry by unlocking worldwide LNG resources.
"Furthermore, the click here 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 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 sasol learnerships 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, sasol 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.