Eskom and Sasol Have Signed A Gas-For-Fuel MoU Agreement
Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate prospective long term liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two organizations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the probable volumes that South Africa requires to determine a feasible LNG import marketplace, together with the enabling infrastructure, and can be facilitated by govt-to-federal government relations exactly where essential."
"This initiative concentrates on working with gas for ability generation to deliver critical base load electrical power and position gas as a critical enabler of re-industrialisation, although also making sure continued 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 eskom careers 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 eskom vacancies Africa.
"As part of its revised gas strategy, Sasol is eskom learnerships 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.