Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and study possible future liquified natural gas (LNG) requirements".
This is based on 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 involves to determine a feasible LNG import market, together with the enabling infrastructure, and can be facilitated by govt-to-federal government relations exactly where necessary."
"This initiative concentrates on utilizing fuel for electricity generation to provide necessary base load electrical energy and position gas to be a essential enabler of re-industrialisation, whilst also guaranteeing continued supply to the marketplace by unlocking worldwide LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix eskom learnerships 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 click here 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 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, eskom learnerships while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.