Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research potential potential liquified natural gas (LNG) requirements".
This is based on a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the potential volumes that South Africa needs to establish a practical LNG import current market, along with the enabling infrastructure, and will be facilitated by authorities-to-authorities relations where by important."
"This initiative focuses on working with gasoline for power generation to deliver vital base load electric power and position gas to be a essential enabler of re-industrialisation, even though also making certain continued supply to the marketplace 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 vacancies 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 click here 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 more info 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.