Eskom and Sasol Have Signed A Gas-For-Power MoU Document
Eskom and Sasol Have Signed A Gas-For-Power MoU Document
Blog Article
Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research prospective future liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two corporations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the prospective volumes that South Africa necessitates to establish a practical LNG import sector, together with the enabling infrastructure, and may be facilitated by govt-to-governing administration relations in which vital."
"This initiative concentrates on applying fuel for ability generation to offer vital base load electric power and position gas for a essential enabler of re-industrialisation, whilst also ensuring continued supply to the industry by unlocking world wide LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the here country's energy transition and decarbonisation," the joint statement read.
The MoU is expected to "explore sourcing gas within sasol 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 sasol vacancies 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.