Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement
Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research potential future liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two providers, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the potential volumes that South Africa necessitates to determine a practical LNG import sector, together with the enabling infrastructure, and may be facilitated by govt-to-govt relations wherever vital."
"This initiative concentrates on working with gasoline for electricity generation to supply crucial base load electric power and position gas for a essential enabler of re-industrialisation, although also ensuring continued supply to the industry by unlocking world-wide LNG resources.
"Furthermore, the collaboration will contribute to enhancing get more info 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 click here 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 more info 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.