Friday, September 20, 2024

Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and study possible future liquified natural gas (LNG) requirements".

This can be based on a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.

"The collaboration aims to determine the possible volumes that South Africa needs to establish a viable LNG import sector, combined with the enabling infrastructure, and will be facilitated by federal government-to-federal government relations exactly where necessary."

"This initiative concentrates on employing gas for ability generation to supply important base load electricity and position gas to be a essential enabler of re-industrialisation, whilst also making sure continued supply to the industry by unlocking worldwide 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 click here to gas in more info 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 sasol 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.