Eskom and Sasol Have Signed A Gas-For-Power MoU Document
Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate possible long term liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two providers, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the likely volumes that South Africa demands to establish a practical LNG import marketplace, combined with the enabling infrastructure, and can be facilitated by govt-to-govt relations in which required."
"This initiative concentrates on employing gas for power generation to offer crucial base load electrical energy and position gas for a important enabler of re-industrialisation, when also ensuring 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 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 addition to evaluating long-term LNG contracting".
"This will support the gas requirements for Eskom’s planned sasol 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 check here South Africa.
"As part of its revised gas strategy, Sasol is working on enabling the future supply more info 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.