Eskom and Sasol Have Signed A Gas MoU Document


Friday, September 20, 2024

Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research prospective potential liquified natural gas (LNG) requirements".

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

"The collaboration aims to determine the potential volumes that South Africa calls for to determine a viable LNG import marketplace, together with the enabling infrastructure, and will be facilitated by govt-to-govt relations where vital."

"This initiative concentrates on utilizing gasoline for electrical power generation to offer critical base load energy and position gas being a important enabler of re-industrialisation, although also making certain continued supply to the market by unlocking international LNG resources.

"Furthermore, the collaboration will contribute to website 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 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 sasol statement said.

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