Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research possible potential liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two firms, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the possible volumes that South Africa necessitates to establish a practical LNG import market, along with the enabling infrastructure, and will be facilitated by govt-to-governing administration relations wherever vital."
"This initiative concentrates on employing gasoline for electrical power generation to provide essential base load electricity and position gas to be a critical enabler of re-industrialisation, even though also ensuring ongoing 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 to gas in the long term. The parties will also engage other state entities to enable an LNG value more info 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.