Eskom and Sasol Have Signed A Gas-For-Fuel MoU Agreement
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Agreement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study possible future liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two organizations, 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 feasible LNG import marketplace, together with the enabling infrastructure, and can be facilitated by government-to-governing administration relations the place needed."
"This initiative focuses on working with gas for power generation to offer essential base load electricity and position gas being a important enabler of re-industrialisation, though also making certain ongoing supply to the market 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 sasol learnerships to evaluating long-term LNG contracting".
"This will support the gas requirements for Eskom’s planned coal read more 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 more info 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.