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 business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research possible potential liquified natural gas (LNG) requirements".
This is based on a joint statement by the two corporations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the likely volumes that South Africa requires to establish a practical LNG import current market, combined with the enabling infrastructure, and may be facilitated by authorities-to-authorities relations where by important."
"This initiative focuses on applying gas for electric power generation to offer essential base load energy and position gas for a important enabler of re-industrialisation, when also ensuring continued supply to the market by unlocking world wide 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 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 sasol learnerships Africa by collaborating with companies such as Eskom, existing eskom vacancies 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 eskom vacancies 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.