Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate potential future liquified natural gas (LNG) requirements".
That is according to a joint statement by the two firms, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the likely volumes that South Africa needs to ascertain a feasible LNG import sector, together with the enabling infrastructure, and will be facilitated by government-to-authorities relations wherever vital."
"This initiative concentrates on using fuel for power generation to provide essential base load electrical energy and position gas like a critical enabler of re-industrialisation, whilst also guaranteeing continued supply to the industry by unlocking global LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy sasol careers 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 eskom vacancies 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 and future customers, suppliers, and eskom careers 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.