Friday, September 20, 2024

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

This is based on a joint statement by the two organizations, following the signing ceremony of the MoU on Friday.

"The collaboration aims to determine the probable volumes that South Africa necessitates to establish a practical LNG import marketplace, together with the enabling infrastructure, and will be facilitated by government-to-govt relations where important."

"This initiative concentrates on making use of gas for ability generation to offer crucial base load electrical energy and position gas as a critical enabler of re-industrialisation, although also making certain ongoing supply to the marketplace 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 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 sasol bursaries by collaborating with companies such as Eskom, existing and future customers, suppliers, and infrastructure developers.

"The research more info findings from the first phase of the Sasol-Eskom collaboration will guide the necessary role players and investors required to offer the best here prospects for South Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.