Eskom and Sasol Have Signed A Gas MoU Document
Eskom and Sasol Have Signed A Gas MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research potential future liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two organizations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the possible volumes that South Africa calls for to establish a feasible LNG import industry, together with the enabling infrastructure, and can be facilitated by authorities-to-govt relations exactly where needed."
"This initiative concentrates on using gas for electric power generation to deliver essential base load electric power and position gas to be a key enabler of re-industrialisation, whilst also making certain continued supply to the industry 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 eskom learnerships 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 here 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, 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 eskom market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.