Eskom and Sasol Have Signed A Gas MoU Agreement
Eskom and Sasol Have Signed A Gas MoU Agreement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and investigate prospective long term liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two companies, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the likely volumes that South Africa involves to ascertain a practical LNG import industry, together with the enabling infrastructure, and will be facilitated by governing administration-to-govt relations the place necessary."
"This initiative focuses on applying gas for electric power generation to supply necessary base load electrical energy and position gas to be a crucial enabler of re-industrialisation, though also ensuring continued supply to the market by unlocking world wide LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the country's energy transition sasol careers 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 more info the gas requirements for Eskom’s planned coal power station repowering and conversion to eskom careers 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.