Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate possible future liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two firms, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the possible volumes that South Africa involves to determine a viable LNG import marketplace, along with the enabling infrastructure, and may be facilitated by federal government-to-federal government relations in which needed."
"This initiative focuses on applying gasoline for power generation to offer essential base load energy and position gas as a essential enabler of re-industrialisation, while also guaranteeing ongoing supply to the market by unlocking world wide LNG resources.
"Furthermore, sasol vacancies 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 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 eskom vacancies 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.