Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study prospective long term liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the potential volumes that South Africa necessitates to establish a practical LNG import marketplace, along with the enabling infrastructure, and may be facilitated by authorities-to-government relations where by necessary."
"This initiative focuses on using gasoline for energy generation to provide important base load electric power and position gas like a critical enabler of re-industrialisation, even though also guaranteeing ongoing supply to the market by unlocking global 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 eskom careers 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 eskom vacancies part of its revised gas strategy, sasol bursaries 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, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.