ESKOM AND SASOL HAVE SIGNED A GAS-FOR-POWER MOU AGREEMENT

Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement

Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement

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Friday, September 20, 2024

Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and study prospective long term liquified natural gas (LNG) requirements".

This is based on a joint statement by the two firms, following the signing ceremony of the MoU on Friday.

"The collaboration aims to find out the prospective volumes that South Africa necessitates to determine a feasible LNG import industry, together with the enabling infrastructure, and can be facilitated by authorities-to-govt relations exactly where vital."

"This initiative focuses on making use of fuel for energy generation to offer essential base load electric power and position gas as a crucial enabler of re-industrialisation, even though also guaranteeing 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 parties will also engage other state entities to enable an LNG value chain in South Africa.

"As part of its more info revised gas strategy, Sasol is working eskom vacancies 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 website for LNG imports," the statement said.

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