Eskom and Sasol Have Signed A Gas-For-Fuel MoU Document
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and study possible long term liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the prospective volumes that South Africa necessitates to determine a practical LNG import sector, together with the enabling infrastructure, and may be facilitated by authorities-to-authorities relations exactly where required."
"This initiative concentrates on applying gasoline for electrical power generation to provide critical base load electricity and position gas to be a critical enabler of re-industrialisation, although also ensuring 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 and decarbonisation," the joint statement read.
The check here 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 eskom vacancies 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 eskom 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.