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 is based on a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the possible volumes that South Africa demands to ascertain a practical LNG import marketplace, together with the enabling infrastructure, and may be facilitated by governing administration-to-authorities relations wherever necessary."
"This initiative focuses on employing gasoline for ability generation to provide crucial base load energy and position gas as a important enabler of re-industrialisation, although also making certain continued supply to the market 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, get more info 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 eskom vacancies 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.