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 investigate and investigate possible long term liquified natural gas (LNG) requirements".
This is based on a joint statement by the two companies, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the potential volumes that South Africa involves to establish a feasible LNG import current market, along with the enabling infrastructure, and will be facilitated by government-to-govt relations where by essential."
"This initiative focuses on making use of gasoline for power generation to offer critical base load electrical power and position gas as being a critical enabler of re-industrialisation, although also making sure continued supply to the industry 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 read more 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 sasol learnerships 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 website long-term commitments required for LNG imports," the statement said.