Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement
Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research possible potential liquified natural gas (LNG) requirements".
This is according to a joint statement by the two firms, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the probable volumes that South Africa calls for to establish a practical LNG import market place, along with the enabling infrastructure, and can be facilitated by federal government-to-govt relations in which necessary."
"This initiative concentrates on utilizing gasoline for power generation to offer crucial base load electric power and position gas to be a essential enabler of re-industrialisation, though also ensuring continued supply to the marketplace 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 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 sasol learnerships gas strategy, Sasol is working on enabling eskom careers 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 sasol vacancies statement said.