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 discover and research prospective potential liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two providers, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the possible volumes that South Africa demands to establish a practical LNG import industry, along with the enabling infrastructure, and may be facilitated by government-to-governing administration relations the place essential."
"This initiative concentrates on making use of fuel for electric power generation to deliver important base load energy and position gas for a important enabler of re-industrialisation, when also making certain ongoing supply to the industry by unlocking worldwide 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 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 get more info associated with the long-term commitments required for LNG imports," more info the statement said.