Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement


Friday, September 20, 2024

Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate prospective long term liquified natural gas (LNG) requirements".

This really is according to 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 needs to ascertain a practical LNG import industry, combined with the enabling infrastructure, and may be facilitated by governing administration-to-authorities relations wherever essential."

"This initiative focuses on working with fuel for energy generation to offer critical base load electrical energy and position gas like a crucial enabler of re-industrialisation, although also ensuring ongoing supply to the industry by unlocking world-wide LNG resources.

"Furthermore, the collaboration will contribute to enhancing South Africa’s energy website 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 get more info 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.

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