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 company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research possible long term liquified natural gas (LNG) requirements".
This is based on a joint statement by the two organizations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the possible volumes that South Africa necessitates to determine a practical LNG import market, along with the enabling infrastructure, and can be facilitated by authorities-to-authorities relations in which necessary."
"This initiative concentrates on employing gasoline for electrical power generation to deliver critical base load energy and position gas to be a critical enabler of re-industrialisation, though also making sure continued supply to the industry by unlocking worldwide LNG here 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, read more 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 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.