Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research potential long term liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two providers, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the likely volumes that South Africa involves to ascertain a viable LNG import market place, along with the enabling infrastructure, and can be facilitated by govt-to-governing administration relations in which essential."
"This initiative concentrates on utilizing gasoline for power generation to supply important base load electricity and position gas as being a key enabler of re-industrialisation, even though also ensuring continued supply to the marketplace by unlocking world wide sasol 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 eskom 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 get more info 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.