Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate prospective future liquified natural gas (LNG) requirements".
That is based on a joint statement by the two corporations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the probable volumes that South Africa involves to determine a practical LNG import market place, along with the enabling infrastructure, and will be facilitated by governing administration-to-governing administration relations where vital."
"This initiative focuses on using fuel for electric power generation to offer vital base load energy and position gas for a important enabler of re-industrialisation, when also ensuring continued supply to the market by unlocking world-wide 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 more info 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 sasol 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.