Eskom and Sasol Have Signed A Gas-For-Fuel MoU Agreement
Eskom and Sasol Have Signed A Gas-For-Fuel MoU Agreement
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research prospective future liquified natural gas (LNG) requirements".
This is based on a joint statement by the two businesses, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the prospective volumes that South Africa demands to determine a practical LNG import industry, together with the enabling infrastructure, and will be facilitated by authorities-to-governing administration relations in which vital."
"This initiative concentrates on utilizing gasoline for ability generation to provide vital base load electricity and position gas as being a crucial enabler of re-industrialisation, although also guaranteeing continued supply to the market by unlocking international LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy eskom careers mix and enable the country's energy transition and decarbonisation," the joint statement read.
The MoU is expected to "explore get more info sourcing gas within South Africa, the Southern African Development Community region, and other parts of the African here 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 statement said.