Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research potential potential liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two companies, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the probable volumes that South Africa demands to establish a feasible LNG import market place, combined with the enabling infrastructure, and will be facilitated by authorities-to-government relations wherever needed."
"This initiative focuses on working with gas for power generation to offer important base load electricity and position gas being a important enabler of re-industrialisation, when also ensuring ongoing supply to the industry by unlocking international 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 in the long term. The parties will also engage more info other state entities to enable an LNG value chain in South Africa.
"As more info 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.