Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research prospective potential liquified natural gas (LNG) requirements".
That is based on a joint statement by the two companies, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the likely volumes that South Africa requires to establish a feasible LNG import marketplace, along with the enabling infrastructure, and will be facilitated by authorities-to-govt relations exactly where essential."
"This initiative concentrates on utilizing gasoline for electrical power generation to deliver vital base load electrical power and position gas to be a key enabler of re-industrialisation, although also making certain continued supply to the market by unlocking global LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the country's energy transition and decarbonisation," the here 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 sasol South Africa by collaborating with companies such as Eskom, existing and future customers, suppliers, and infrastructure developers.
"The eskom vacancies 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.