Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research possible future liquified natural gas (LNG) requirements".
That is based on a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the possible volumes that South Africa involves to establish a feasible LNG import marketplace, combined with the enabling infrastructure, and will be facilitated by government-to-federal government relations wherever vital."
"This initiative focuses on making use of gasoline for electric power generation to deliver crucial base load electrical energy and position gas as being a critical enabler of re-industrialisation, when also guaranteeing ongoing supply to the industry 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 requirements for Eskom’s planned coal power station repowering and conversion to gas in the long term. The parties will also engage other get more info 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 more info 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.