Eskom and Sasol Have Signed A Gas MoU Arrangement
Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and study possible long term liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two organizations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the potential volumes that South Africa necessitates to ascertain a practical LNG import sector, together with the enabling infrastructure, and can be facilitated by governing administration-to-governing administration relations where necessary."
"This initiative concentrates on making use of fuel for electric power generation to supply necessary base load electrical energy and position gas as being a vital enabler of re-industrialisation, even though also ensuring continued supply to the industry by unlocking international 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 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, website 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 eskom learnerships South Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.