Eskom and Sasol Have Signed A Gas-For-Fuel MoU Arrangement
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Arrangement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study possible potential liquified natural gas (LNG) requirements".
This is according to a joint statement by the two firms, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the probable volumes that South Africa demands to establish a practical LNG import sector, combined with the enabling infrastructure, and can be facilitated by federal government-to-federal government relations the place needed."
"This initiative focuses on applying gasoline for electrical power generation to provide critical base load energy and position gas for a essential enabler of re-industrialisation, whilst also guaranteeing continued supply to the marketplace 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 click here "explore sourcing gas within South Africa, get more info the Southern African Development Community region, and other parts of the African continent, in addition to evaluating long-term LNG contracting".
"This will support eskom careers 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 associated with the long-term commitments required for LNG imports," the statement said.