Eskom and Sasol Have Signed A Gas-For-Fuel MoU Document
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate potential future liquified natural gas (LNG) requirements".
That is based on a joint statement by the two firms, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the potential volumes that South Africa involves to determine a feasible LNG import current market, together with the enabling infrastructure, and may be facilitated by authorities-to-governing administration relations where required."
"This initiative focuses on applying fuel for electricity generation to supply essential base load electrical energy and position gas as a crucial enabler of re-industrialisation, while also guaranteeing continued supply to the industry by unlocking international 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 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 read more gas strategy, Sasol is working on enabling the future supply of LNG to South Africa by collaborating with sasol vacancies 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.