Eskom and Sasol Have Signed A Gas MoU Arrangement
Eskom and Sasol Have Signed A Gas MoU Arrangement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research possible potential liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two corporations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the prospective volumes that South Africa demands to ascertain a practical LNG import market, combined with the enabling infrastructure, and may be facilitated by govt-to-governing administration relations in which needed."
"This initiative concentrates on utilizing gasoline for ability generation to supply critical base load electrical power and position gas as a crucial enabler of re-industrialisation, although also making certain ongoing supply to the industry by unlocking global LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the country's website 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 read more 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 sasol bursaries 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.