Eskom and Sasol Have Signed A Gas MoU Document
Eskom and Sasol Have Signed A Gas MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study prospective potential liquified natural gas (LNG) requirements".
This is according to 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 demands to ascertain a practical LNG import sector, along with the enabling infrastructure, and can be facilitated by government-to-federal government relations wherever essential."
"This initiative focuses on working with gas for electrical power generation to offer critical base load energy and position gas as a important enabler of re-industrialisation, even though also making sure ongoing supply to the marketplace by unlocking world LNG resources.
"Furthermore, the collaboration will contribute eskom learnerships to enhancing South Africa’s energy mix and enable the country's energy transition and decarbonisation," the joint statement read.
The MoU is expected eskom careers to "explore sourcing gas within South Africa, the Southern African Development Community region, and other parts of the eskom 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 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 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.