Eskom and Sasol Have Signed A Gas-For-Power MoU Arrangement
Eskom and Sasol Have Signed A Gas-For-Power MoU Arrangement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate potential future liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two organizations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the potential volumes that South Africa needs to determine a practical LNG import sector, along with the enabling infrastructure, and can be facilitated by authorities-to-authorities relations in which required."
"This initiative concentrates on applying gas for electrical power generation to provide essential base load electrical energy and position gas as being a vital enabler of re-industrialisation, even though also ensuring ongoing supply to the market by unlocking world wide 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 sasol bursaries as Eskom, existing and future customers, suppliers, and infrastructure developers.
"The research findings from the first eskom learnerships phase of the Sasol-Eskom collaboration will guide sasol vacancies 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.