Friday, September 20, 2024

Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate potential long term liquified natural gas (LNG) requirements".

This really is based on a joint statement by the two firms, following the signing ceremony from the MoU on Friday.

"The collaboration aims to determine the potential volumes that South Africa demands to ascertain a viable LNG import current market, along with the enabling infrastructure, and will be facilitated by governing administration-to-federal government relations where required."

"This initiative focuses on working with gasoline for electric power generation to deliver essential base load electrical energy and position gas being 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, 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 website the long term. The parties will also engage other more info 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.