Eskom and Sasol Have Signed A Gas-For-Fuel MoU Agreement
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Agreement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate possible potential liquified natural gas (LNG) requirements".
That is based on a joint statement by the two firms, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the potential volumes that South Africa necessitates to ascertain a practical LNG import market place, together with the enabling infrastructure, and will be facilitated by governing administration-to-authorities relations where by essential."
"This initiative concentrates on using gas for electricity generation to offer essential base load electrical power and position gas as a essential enabler of re-industrialisation, while also ensuring ongoing supply to the marketplace by unlocking worldwide 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 here LNG contracting".
"This will support the gas requirements for Eskom’s planned coal power station repowering and conversion to gas in the long get more info 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 sasol careers long-term commitments required for LNG imports," the statement said.