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 business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and study potential potential liquified natural gas (LNG) requirements".
This 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 probable volumes that South Africa necessitates to determine a feasible LNG import sector, combined with the enabling infrastructure, and will be facilitated by federal government-to-authorities relations where by important."
"This initiative concentrates on applying gasoline for power generation to offer important base load electricity and position gas being a key enabler of re-industrialisation, even though also ensuring continued supply to the industry by unlocking international LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy eskom learnerships 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 sasol bursaries 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.