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 company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research possible future liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two corporations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the potential volumes that South Africa necessitates to establish a viable LNG import market place, together with the enabling infrastructure, and will be facilitated by governing administration-to-authorities relations the place vital."
"This initiative concentrates on using gas for electricity generation to deliver vital base load electricity and position gas to be a key enabler of re-industrialisation, whilst also making certain continued supply to the marketplace by unlocking global LNG resources.
"Furthermore, the collaboration will contribute sasol vacancies to enhancing South Africa’s energy mix and enable the country's energy transition and decarbonisation," the more info 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 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 eskom careers market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.