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 company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research possible future liquified natural gas (LNG) requirements".
That is according to a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the potential volumes that South Africa needs to ascertain a practical LNG import sector, combined with the enabling infrastructure, and may be facilitated by government-to-governing administration relations in which important."
"This initiative focuses on employing gasoline for electric power generation to deliver crucial base load electricity and position gas being a essential enabler of re-industrialisation, when also ensuring ongoing 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 eskom vacancies 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 read more 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 here with the long-term commitments required for LNG imports," the statement said.