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 study possible potential liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two organizations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the likely volumes that South Africa needs to determine a viable LNG import market, combined with the enabling infrastructure, and may be facilitated by govt-to-federal government relations the place necessary."
"This initiative concentrates on applying gas for electric power generation to supply vital base load electricity and position gas being a vital enabler of re-industrialisation, whilst also making certain ongoing supply to the industry 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 sasol vacancies 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 check here 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, and infrastructure developers.
"The research findings from the first phase of the Sasol-Eskom collaboration will guide the necessary sasol bursaries 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.