Eskom and Sasol Have Signed A Gas-For-Fuel MoU Arrangement
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Arrangement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and study potential potential liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two businesses, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the probable volumes that South Africa calls for to establish a viable LNG import current market, along with the enabling infrastructure, and will be facilitated by government-to-federal government relations wherever necessary."
"This initiative focuses on utilizing gas for electrical power generation to provide important base load electric power and position gas for a essential 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 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 eskom vacancies term. The parties will also engage other state entities to enable an LNG value chain in South Africa.
"As part of its revised eskom vacancies 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 here prospects for South Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.