Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement
Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research potential potential liquified natural gas (LNG) requirements".
That is based on a joint statement by the two providers, 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 viable LNG import market, together with the enabling infrastructure, and can be facilitated by governing administration-to-govt relations in which essential."
"This initiative concentrates on employing gas for power generation to offer crucial base load electrical energy and position gas to be a essential enabler of re-industrialisation, whilst also making sure continued 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 sasol 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 sasol vacancies 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 sasol vacancies 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.