Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and study possible potential liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two companies, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the likely volumes that South Africa demands to determine a feasible LNG import market place, together with the enabling infrastructure, and can be facilitated by authorities-to-authorities relations wherever vital."
"This initiative concentrates on working with gasoline for electricity generation to supply crucial base load energy and position gas as a key enabler of re-industrialisation, though also guaranteeing continued supply to the market by unlocking world 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 here 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, read more 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.