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 explore and research potential future liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two providers, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the probable volumes that South Africa needs to ascertain a viable LNG import marketplace, along with the enabling infrastructure, and may be facilitated by authorities-to-authorities relations where necessary."
"This initiative concentrates on making use of gas for power generation to offer crucial base load electrical power and position gas as being a vital enabler of re-industrialisation, although also making sure continued supply to the marketplace by unlocking global LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the country's sasol vacancies energy transition and decarbonisation," the check here joint statement read.
The MoU is expected to "explore sourcing gas within South Africa, the Southern African Development Community region, and other parts here 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.