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 business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate potential potential liquified natural gas (LNG) requirements".
This is based on a joint statement by the two companies, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the potential volumes that South Africa needs to establish a practical LNG import market place, combined with the enabling infrastructure, and may be facilitated by federal government-to-government relations the place essential."
"This initiative focuses on applying gasoline for power generation to supply important base load electric power and position gas for a essential enabler of re-industrialisation, even though also making certain continued supply to the market 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 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 more info 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 click here prospects for South Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.