Eskom and Sasol Have Signed A Gas-For-Power MoU Document


Friday, September 20, 2024

Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and study potential long term liquified natural gas (LNG) requirements".

This is according to a joint statement by the two companies, following the signing ceremony from the MoU on Friday.

"The collaboration aims to find out the prospective volumes that South Africa requires to ascertain a viable LNG import marketplace, combined with the enabling infrastructure, and will be facilitated by governing administration-to-government relations the place essential."

"This initiative concentrates on working with gas for power generation to offer crucial base load energy and position gas like a key enabler of re-industrialisation, whilst also guaranteeing ongoing supply to the marketplace by unlocking get more info 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 get more info 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 read more 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 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.

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