Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and investigate prospective future liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two firms, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the potential volumes that South Africa requires to determine a viable LNG import current market, along with the enabling infrastructure, and can be facilitated by govt-to-authorities relations where by needed."
"This initiative concentrates on utilizing gasoline for power generation to offer critical base load energy and position gas as a important enabler of re-industrialisation, even though also guaranteeing ongoing supply to the industry 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 sasol vacancies 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 sasol bursaries 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, more info while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.