Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate possible future liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two firms, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the potential volumes that South Africa requires to ascertain a feasible LNG import market, together with the enabling infrastructure, and may be facilitated by authorities-to-federal government relations exactly where necessary."
"This initiative concentrates on utilizing fuel for ability generation to supply essential base load electricity and position gas being a key enabler of re-industrialisation, although also ensuring ongoing supply to the industry by unlocking global LNG resources.
"Furthermore, the collaboration will contribute to enhancing South sasol careers Africa’s energy mix and enable the click here 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 energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.