Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and investigate possible long term liquified natural gas (LNG) requirements".
This is according to a joint statement by the two companies, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the prospective volumes that South Africa calls for to determine a practical LNG import marketplace, combined with the enabling infrastructure, and can be facilitated by government-to-authorities relations the place vital."
"This initiative concentrates on using fuel for electrical power generation to offer vital base load electricity and position gas as being a crucial enabler of re-industrialisation, even though also guaranteeing continued supply to the market by unlocking global LNG resources.
"Furthermore, the collaboration here will contribute to enhancing South get more info 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 get more info energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.