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 business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study prospective potential liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the probable volumes that South Africa needs to ascertain a feasible LNG import market place, combined with the enabling infrastructure, and will be facilitated by governing administration-to-government relations where necessary."
"This initiative concentrates on applying fuel for electricity generation to supply important base load electrical energy and position gas as being a vital enabler of re-industrialisation, when also making certain ongoing supply to the marketplace by unlocking global LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the country's eskom learnerships energy transition and decarbonisation," the click here 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 here 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.