Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and study potential potential liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two companies, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the prospective volumes that South Africa involves to establish a feasible LNG import market, combined with the enabling infrastructure, and may be facilitated by govt-to-govt relations where by required."
"This initiative concentrates on utilizing gas for electric power generation to deliver crucial base load electricity and position gas like a vital enabler of re-industrialisation, whilst also making certain continued supply to the marketplace by unlocking world-wide LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix eskom vacancies 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 sasol 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 more info 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.