Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate prospective long term liquified natural gas (LNG) requirements".
This is based on a joint statement by the two businesses, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the possible volumes that South Africa demands to determine a viable LNG import market place, along with the enabling infrastructure, and may be facilitated by governing administration-to-federal government relations exactly where necessary."
"This initiative concentrates on utilizing gasoline for electricity generation to deliver important base load energy and position gas like a vital enabler of re-industrialisation, when also ensuring ongoing supply to the market by unlocking world-wide 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 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 here developers.
"The research findings from the first phase of the Sasol-Eskom collaboration will guide the necessary role players and investors required to offer read more the best prospects for South Africa's energy market, while outlining the challenges associated eskom with the long-term commitments required for LNG imports," the statement said.