Eskom and Sasol Have Signed A Gas-For-Fuel MoU Document
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research prospective future liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two corporations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the potential volumes that South Africa involves to establish a viable LNG import marketplace, together with the enabling infrastructure, and will be facilitated by government-to-federal government relations in which vital."
"This initiative concentrates on applying gas for electrical power generation to provide crucial base load energy and position gas as a important enabler of re-industrialisation, whilst also making certain ongoing supply to the industry by unlocking world 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 eskom 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 read more South Africa.
"As part of more info 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 market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.