Eskom and Sasol Have Signed A Gas-For-Power MoU Document
Eskom and Sasol Have Signed A Gas-For-Power MoU Document
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 long term liquified natural gas (LNG) requirements".
This is according to a joint statement by the two organizations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the potential volumes that South Africa involves to establish a feasible LNG import marketplace, combined with the enabling infrastructure, and may be facilitated by govt-to-federal government relations exactly where vital."
"This initiative focuses on utilizing gasoline for ability generation to provide important base load energy and position gas being a critical enabler of re-industrialisation, though also making sure ongoing supply to the industry by unlocking global LNG resources. click here
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and get more info 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 click here 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 market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.