Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement
Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement
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 possible long term liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two organizations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the potential volumes that South Africa demands to determine a feasible LNG import sector, together with the enabling infrastructure, and may be facilitated by government-to-govt relations where required."
"This initiative concentrates on applying fuel for electricity generation to deliver crucial base load energy and position gas being a vital enabler of re-industrialisation, whilst also making certain 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 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 eskom careers 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 eskom learnerships 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 sasol learnerships long-term commitments required for LNG imports," the statement said.