Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research prospective long term liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two companies, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the possible volumes that South Africa requires to ascertain a feasible LNG import sector, along with the enabling infrastructure, and can be facilitated by authorities-to-federal government relations where needed."
"This initiative concentrates on working with fuel for power generation to provide important base load electrical power and position gas for a critical enabler of re-industrialisation, when also guaranteeing ongoing supply to the marketplace by unlocking worldwide 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 eskom vacancies 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 eskom 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 eskom careers 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.