Eskom and Sasol Have Signed A Gas MoU Agreement
Eskom and Sasol Have Signed A Gas MoU Agreement
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 prospective long term liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two companies, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the probable volumes that South Africa involves to ascertain a viable LNG import market, together with the enabling infrastructure, and will be facilitated by authorities-to-govt relations the place required."
"This initiative focuses on applying gasoline for electricity generation to deliver important base load electricity and position gas being a important enabler of re-industrialisation, though also making certain continued 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 read.
The MoU is expected more info to "explore sourcing gas within South Africa, the Southern African Development Community region, and other parts of the African continent, in addition website to evaluating long-term LNG contracting".
"This will support the gas requirements for Eskom’s planned coal power station repowering and conversion to gas sasol bursaries 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 market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.