Eskom and Sasol Have Signed A Gas-For-Fuel MoU Arrangement
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study possible long term liquified natural gas (LNG) requirements".
That is based on a joint statement by the two providers, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the possible volumes that South Africa calls for to establish a feasible LNG import market, combined with the enabling infrastructure, and will be facilitated by authorities-to-governing administration relations wherever necessary."
"This initiative focuses on employing fuel for electricity generation to provide crucial base load energy and position gas as a essential enabler of re-industrialisation, though also making certain ongoing supply to the industry by unlocking world-wide LNG resources. sasol bursaries
"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 sasol South sasol bursaries 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 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.