Eskom and Sasol Have Signed A Gas-For-Fuel MoU Arrangement
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Arrangement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study prospective future liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two firms, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the likely volumes that South Africa needs to establish a viable LNG import sector, together with the enabling infrastructure, and can be facilitated by governing administration-to-govt relations the place required."
"This initiative focuses on working with fuel for electricity generation to provide important base load electricity and position gas as a key enabler of re-industrialisation, when also making certain ongoing supply to the market by unlocking world wide 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 sasol bursaries 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, eskom 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 sasol careers South Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.