Eskom and Sasol Have Signed A Gas-For-Power MoU Arrangement
Eskom and Sasol Have Signed A Gas-For-Power MoU Arrangement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research possible potential liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two organizations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the potential volumes that South Africa needs to establish a practical LNG import current market, combined with the enabling infrastructure, and can be facilitated by governing administration-to-authorities relations where vital."
"This initiative concentrates on utilizing fuel for electric power generation to supply essential base load electricity and position gas for a crucial enabler of re-industrialisation, while also guaranteeing continued supply to the industry by unlocking international LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the country's energy transition eskom learnerships and decarbonisation," the joint statement read.
The MoU is expected to "explore sourcing gas within South Africa, sasol careers 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 check here 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.