Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research possible future liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the potential volumes that South Africa needs to establish a practical LNG import current market, combined with the enabling infrastructure, and will be facilitated by governing administration-to-govt relations the place important."
"This initiative focuses on working with gasoline for electricity generation to offer important base load energy and position gas like a vital enabler of re-industrialisation, even though also making sure continued supply to the marketplace 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 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 here 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 Eskom, existing and future customers, suppliers, and infrastructure developers.
"The research findings from the first phase of the Sasol-Eskom collaboration will guide the more info 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.