Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research potential long term liquified natural gas (LNG) requirements".
This is according to a joint statement by the two companies, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the probable volumes that South Africa necessitates to ascertain a practical LNG import market, combined with the enabling infrastructure, and can be facilitated by govt-to-governing administration relations exactly where needed."
"This initiative concentrates on working with gasoline for electric power generation to offer necessary base load electricity and position gas being a critical enabler of re-industrialisation, when also guaranteeing continued supply to the market by unlocking international LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the country's sasol vacancies 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 eskom vacancies gas requirements for Eskom’s planned coal power station repowering and conversion to gas in eskom careers 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 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.