Eskom and Sasol Have Signed A Gas-For-Fuel MoU Document
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research potential potential liquified natural gas (LNG) requirements".
This is based on a joint statement by the two corporations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the probable volumes that South Africa demands to establish a practical LNG import market, together with the enabling infrastructure, and can be facilitated by government-to-government relations where essential."
"This initiative focuses on using fuel for electricity generation to supply important base load electrical energy and position gas like a key enabler of re-industrialisation, while also making sure continued supply to the marketplace by unlocking world LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and eskom vacancies enable the country's energy transition and decarbonisation," the joint more info 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, 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 website 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.