Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate prospective potential liquified natural gas (LNG) requirements".
This is based on a joint statement by the two organizations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the likely volumes that South Africa requires to determine a feasible LNG import market place, combined with the enabling infrastructure, and will be facilitated by governing administration-to-governing administration relations wherever important."
"This initiative focuses on using fuel for electrical power generation to provide crucial base load energy and position gas being a vital enabler of re-industrialisation, even though also making sure continued supply to the marketplace 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 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 more info 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 check here with the long-term commitments required for LNG imports," the statement said.