Eskom and Sasol Have Signed A Gas MoU Arrangement


Friday, September 20, 2024

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

That 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 probable volumes that South Africa calls for to determine a viable LNG import current market, along with the enabling infrastructure, and can be facilitated by federal government-to-governing administration relations exactly where necessary."

"This initiative focuses on working with fuel for power generation to provide crucial base load energy and position gas as being a crucial enabler of re-industrialisation, even though also guaranteeing ongoing supply to the marketplace 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 sasol bursaries 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 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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