Eskom and Sasol Have Signed A Gas-For-Power MoU Arrangement
Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research potential potential liquified natural gas (LNG) requirements".
That is based on a joint statement by the two corporations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the potential volumes that South Africa demands to determine a practical LNG import industry, along with the enabling infrastructure, and may be facilitated by government-to-government relations wherever needed."
"This initiative focuses on working with gasoline for power generation to offer important base load electricity and position gas to be a crucial enabler of re-industrialisation, while also guaranteeing ongoing supply to the industry by unlocking global 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 sasol bursaries 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, read more suppliers, and infrastructure developers.
"The research findings from the first phase of the Sasol-Eskom collaboration will guide website 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.