Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate potential long term 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 find out the likely volumes that South Africa needs to determine a viable LNG import market place, together with the enabling infrastructure, and may be facilitated by govt-to-governing administration relations in which required."
"This initiative focuses on utilizing gas for energy generation to offer necessary base load electricity and position gas as being a important enabler of re-industrialisation, whilst also ensuring ongoing supply to the marketplace by unlocking sasol careers worldwide 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 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 website and future customers, suppliers, and infrastructure developers.
"The research findings from the first phase of the Sasol-Eskom collaboration read more 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.