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 really is based on a joint statement by the two firms, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the prospective volumes that South Africa demands to ascertain a feasible LNG import sector, along with the enabling infrastructure, and will be facilitated by government-to-authorities relations the place vital."
"This initiative concentrates on applying fuel for ability generation to deliver critical base load electricity and position gas as a key enabler of re-industrialisation, when also guaranteeing continued supply to the industry 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 read more and decarbonisation," the joint statement read.
The MoU is expected to "explore sourcing gas within South Africa, the eskom vacancies 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 guide the necessary role players and more info 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.