Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and study prospective long term liquified natural gas (LNG) requirements".
This is according to a joint statement by the two organizations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the prospective volumes that South Africa requires to ascertain a feasible LNG import marketplace, combined with the enabling infrastructure, and may be facilitated by federal government-to-governing administration relations wherever needed."
"This initiative focuses on employing gas for power generation to provide essential base load electrical energy and position gas like a crucial enabler of re-industrialisation, even though also guaranteeing continued supply to the industry by unlocking world 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 more info 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 click here 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.