Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement
Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research possible potential liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two firms, 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 current market, along with the enabling infrastructure, and may be facilitated by govt-to-governing administration relations exactly where needed."
"This initiative focuses on employing gasoline for electricity generation to offer critical base load electricity and position gas as a key enabler of re-industrialisation, while also making sure ongoing supply to the market by unlocking global 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 sasol vacancies 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 click here 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 eskom careers 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.