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 company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate prospective long term liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two corporations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the likely volumes that South Africa involves to ascertain a feasible LNG import marketplace, along with the enabling infrastructure, and can be facilitated by governing administration-to-government relations where by important."
"This initiative focuses on utilizing fuel for electricity generation to supply necessary base load electric power and position gas being a crucial enabler of re-industrialisation, while also guaranteeing continued supply to the marketplace 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, sasol 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. eskom learnerships The parties will also engage click here 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.