Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study possible future liquified natural gas (LNG) requirements".
This can be based on a joint statement by the two corporations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the likely volumes that South Africa involves to ascertain a viable LNG import market, together with the enabling infrastructure, and can be facilitated by government-to-governing administration relations the place required."
"This initiative concentrates on employing gas for electricity generation to provide necessary base load electric power and position gas as being a critical enabler of re-industrialisation, whilst also guaranteeing ongoing supply to the market 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 click here power station repowering and conversion to gas in the long term. The parties will also engage other state entities eskom learnerships 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.