Eskom and Sasol Have Signed A Gas-For-Power MoU Document
Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and investigate prospective long term liquified natural gas (LNG) requirements".
That is according to a joint statement by the two providers, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the possible volumes that South Africa calls for to determine a feasible LNG import industry, together with the enabling infrastructure, and may be facilitated by governing administration-to-governing administration relations where by necessary."
"This initiative concentrates on employing fuel for power generation to provide essential base load electrical power and position gas as being a critical enabler of re-industrialisation, even though also making certain ongoing supply to the marketplace by unlocking international 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 check here 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 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 more info 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.