Eskom and Sasol Have Signed A Gas-For-Fuel MoU Agreement


Friday, September 20, 2024

Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research prospective future liquified natural gas (LNG) requirements".

That is according to a joint statement by the two businesses, following the signing ceremony from the MoU on Friday.

"The collaboration aims to find out the likely volumes that South Africa calls for to establish a practical LNG import sector, combined with the enabling infrastructure, and will be facilitated by govt-to-authorities relations where vital."

"This initiative focuses on working with fuel for electricity generation to supply critical base load energy and position gas being a important enabler of re-industrialisation, though also making certain ongoing supply to the industry by unlocking worldwide LNG resources.

"Furthermore, the sasol bursaries 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 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 sasol 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.

Leave a Reply

Your email address will not be published. Required fields are marked *