Eskom and Sasol Have Signed A Gas-For-Fuel MoU Arrangement
Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research potential potential liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two companies, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the likely volumes that South Africa calls for to determine a feasible LNG import market, combined with the enabling infrastructure, and will be facilitated by federal government-to-authorities relations where vital."
"This initiative concentrates on making use of fuel for electrical power generation to offer important base load electric power and position gas as being a crucial enabler of re-industrialisation, though also making sure continued supply to the market by unlocking worldwide 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 sasol bursaries other parts of the African continent, in addition to evaluating long-term LNG contracting".
"This will support the gas sasol careers 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 eskom careers 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.