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


Friday, September 20, 2024

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

That is according to a joint statement by the two firms, following the signing ceremony of the MoU on Friday.

"The collaboration aims to find out the likely volumes that South Africa demands to determine a practical LNG import marketplace, combined with the enabling infrastructure, and can be facilitated by federal government-to-governing administration relations where essential."

"This initiative focuses on utilizing gas for electrical power generation to supply important base load electrical power and position gas for a essential enabler of re-industrialisation, although also making certain ongoing supply to the marketplace 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 to gas more info 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 check here 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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