Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and study prospective future liquified natural gas (LNG) requirements".
That is according to a joint statement by the two companies, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the potential volumes that South Africa involves to determine a viable LNG import industry, combined with the enabling infrastructure, and may be facilitated by federal government-to-govt relations where by necessary."
"This initiative focuses on using gas for energy generation to provide essential base load electrical energy and position gas being a crucial enabler of re-industrialisation, whilst also ensuring ongoing supply to the market 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 get more info 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 sasol learnerships 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 website 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.