Eskom and Sasol Have Signed A Gas MoU Document
Eskom and Sasol Have Signed A Gas MoU Document
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 long term liquified natural gas (LNG) requirements".
This really is based on 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 establish a practical LNG import marketplace, combined with the enabling infrastructure, and will be facilitated by federal government-to-government relations wherever required."
"This initiative concentrates on using gasoline for energy generation to offer essential base load electricity and position gas being a key enabler of re-industrialisation, whilst also making sure ongoing supply to the market by unlocking worldwide LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the eskom vacancies 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 read more 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 eskom 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.