Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and investigate possible potential liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two companies, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the probable volumes that South Africa involves to establish a feasible LNG import sector, along with the enabling infrastructure, and can be facilitated by federal government-to-governing administration relations in which essential."
"This initiative focuses on employing fuel for ability generation to provide important base load electrical power and position gas to be a key enabler of re-industrialisation, whilst also ensuring ongoing supply to the industry 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 sasol bursaries 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 here 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 sasol learnerships 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.