Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover 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 from the MoU on Friday.
"The collaboration aims to determine the probable volumes that South Africa involves to ascertain a practical LNG import market place, along with the enabling infrastructure, and may be facilitated by federal government-to-governing administration relations wherever required."
"This initiative focuses on working with gas for ability generation to offer important base load electricity and position gas for a crucial enabler of re-industrialisation, while also guaranteeing ongoing supply to the market 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 sasol learnerships 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 more info 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 here for South Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.