Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research prospective future liquified natural gas (LNG) requirements".
This is according to a joint statement by the two firms, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the possible volumes that South Africa demands to determine a viable LNG import current market, along with the enabling infrastructure, and can be facilitated by federal government-to-government relations the place vital."
"This initiative focuses on employing fuel for power generation to supply vital base load electricity and position gas being a critical enabler of re-industrialisation, though also ensuring ongoing supply to the industry by unlocking global 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 eskom careers 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 energy market, while outlining the challenges associated with the long-term commitments eskom careers required for LNG imports," the statement said.