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 enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate prospective potential liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two providers, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the likely volumes that South Africa demands to establish a feasible LNG import market place, together with the enabling infrastructure, and will be facilitated by authorities-to-governing administration relations exactly where important."
"This initiative focuses on utilizing fuel for electrical power generation to provide vital base load electrical power and position gas as being a vital enabler of re-industrialisation, although also ensuring ongoing supply to the industry 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 sasol careers 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 click here 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 check here 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 market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.