ESKOM AND SASOL HAVE SIGNED A GAS-FOR-POWER MOU ARRANGEMENT

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 enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate prospective future liquified natural gas (LNG) requirements".

This is according to a joint statement by the two corporations, following the signing ceremony of the MoU on Friday.

"The collaboration aims to determine the probable volumes that South Africa involves to establish a practical LNG import industry, combined with the enabling infrastructure, and can be facilitated by governing administration-to-authorities relations exactly where necessary."

"This initiative focuses on using gasoline for ability generation to offer essential base load electric power and position gas as being a critical enabler of re-industrialisation, though also ensuring continued supply to the industry by unlocking global LNG resources.

"Furthermore, the collaboration will contribute eskom to enhancing South Africa’s energy mix and enable the country's read more energy transition and decarbonisation," the joint statement read.

The MoU is expected to "explore sourcing gas within South Africa, the Southern click here 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 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.

Report this page