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 business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research potential potential liquified natural gas (LNG) requirements".
That is based on a joint statement by the two companies, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the probable volumes that South Africa demands to determine a feasible LNG import market, combined with the enabling infrastructure, and will be facilitated by federal government-to-government relations wherever required."
"This initiative concentrates on using gasoline for energy generation to offer important base load energy and position gas as being a crucial enabler of re-industrialisation, although also making certain continued supply to the market by unlocking global LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the website country's energy transition and decarbonisation," the joint statement read.
The MoU is expected to "explore sourcing gas within sasol bursaries 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, eskom vacancies 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.