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 company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research prospective potential liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two corporations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the probable volumes that South Africa involves to determine a practical LNG import industry, combined with the enabling infrastructure, and may be facilitated by govt-to-governing administration relations exactly where important."
"This initiative concentrates on working with fuel for ability generation to deliver critical base load electrical energy and position gas like a crucial enabler of re-industrialisation, whilst also ensuring ongoing 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 click here Southern African Development Community region, and other parts of the here 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 eskom 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.