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 organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate prospective long term liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two companies, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the possible volumes that South Africa involves to determine a viable LNG import current market, combined with the enabling infrastructure, and will be facilitated by authorities-to-governing administration relations exactly where necessary."
"This initiative focuses on employing fuel for electrical power generation to deliver essential base load electrical power and position gas as a crucial enabler of re-industrialisation, though also making certain ongoing supply to the industry by unlocking worldwide 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 eskom vacancies other parts sasol learnerships 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 sasol bursaries 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.