Eskom and Sasol Have Signed A Gas-For-Power MoU Document
Eskom and Sasol Have Signed A Gas-For-Power MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study possible long term liquified natural gas (LNG) requirements".
That is according to 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 calls for to ascertain a feasible LNG import market place, together with the enabling infrastructure, and may be facilitated by authorities-to-government relations where necessary."
"This initiative concentrates on employing gas for ability generation to offer essential base load electrical energy and position gas being a vital enabler of re-industrialisation, when also making certain ongoing supply to the marketplace by unlocking global 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 website addition to evaluating long-term LNG contracting".
"This will support the gas requirements for Eskom’s planned coal power station repowering eskom learnerships 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 more info 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.