Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research potential potential liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two corporations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the potential volumes that South Africa demands to determine a feasible LNG import industry, along with the enabling infrastructure, and may be facilitated by government-to-governing administration relations wherever required."
"This initiative concentrates on working with gas for ability generation to offer crucial base load energy and position gas to be a essential enabler of re-industrialisation, while also guaranteeing continued supply to the industry by unlocking worldwide LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy get more info 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 check here 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 here Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.