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 business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate possible future liquified natural gas (LNG) requirements".
This is based on a joint statement by the two providers, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the possible volumes that South Africa calls for to establish a practical LNG import current market, together with the enabling infrastructure, and will be facilitated by governing administration-to-federal government relations where by required."
"This initiative focuses on using fuel for energy generation to deliver vital base load electric power and position gas like a key enabler of re-industrialisation, though also guaranteeing continued supply to the market by unlocking world wide 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 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, more info Sasol is working on enabling the future supply of LNG to South Africa by collaborating with companies such as Eskom, existing eskom careers 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 eskom careers energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.