Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate prospective long term liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two corporations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the probable volumes that South Africa needs to ascertain a viable LNG import marketplace, combined with the enabling infrastructure, and may be facilitated by federal government-to-authorities relations where by vital."
"This initiative focuses on using gasoline for electrical power generation to deliver vital base load electric power and position gas like a key enabler of re-industrialisation, when also making certain ongoing supply to the market by unlocking world-wide 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 eskom vacancies parties will also engage other state entities to sasol learnerships 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 read more 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.