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 business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research prospective potential liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two providers, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the possible volumes that South Africa involves to establish a feasible LNG import industry, along with the enabling infrastructure, and may be facilitated by government-to-govt relations the place essential."
"This initiative concentrates on making use of fuel for electricity generation to offer essential base load electricity and position gas for a key enabler of re-industrialisation, whilst also making certain continued supply to the marketplace by unlocking world sasol 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 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 sasol careers future customers, suppliers, and infrastructure developers.
"The research findings from the first phase of the Sasol-Eskom collaboration will guide the necessary role players sasol learnerships 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.