Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and investigate prospective future liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the potential volumes that South Africa calls for to determine a feasible LNG import sector, along with the enabling infrastructure, and will be facilitated by govt-to-governing administration relations where necessary."
"This initiative concentrates on applying fuel for ability generation to offer vital base load electric power and position gas for a essential enabler of re-industrialisation, even though also ensuring ongoing supply to the marketplace by unlocking international 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 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 here requirements for Eskom’s planned coal power station repowering and sasol learnerships 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 check here for LNG imports," the statement said.