Eskom and Sasol Have Signed A Gas-For-Power MoU Document
Eskom and Sasol Have Signed A Gas-For-Power MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate prospective potential liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two firms, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the probable volumes that South Africa calls for to establish a practical LNG import current market, combined with the enabling infrastructure, and can be facilitated by government-to-governing administration relations where by important."
"This initiative focuses on working with gas for power generation to offer crucial base load electrical power and position gas as being a critical enabler of re-industrialisation, whilst also guaranteeing continued supply to the market 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 MoU is expected to "explore sourcing gas within South Africa, click here 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 get more info 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 more info 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.