Eskom and Sasol Have Signed A Gas-For-Fuel MoU Agreement
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Agreement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research potential long term liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two corporations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the likely volumes that South Africa necessitates to determine a viable LNG import market, along with the enabling infrastructure, and can be facilitated by government-to-governing administration relations the place necessary."
"This initiative concentrates on employing gas for ability generation to supply essential base load electricity and position gas for a essential enabler of re-industrialisation, whilst also making sure continued supply to the marketplace by unlocking global LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy eskom careers mix and enable the country's sasol learnerships 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 sasol careers 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.