Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research prospective future liquified natural gas (LNG) requirements".
That is according to a joint statement by the two corporations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the potential volumes that South Africa requires to establish a feasible LNG import sector, along with the enabling infrastructure, and may be facilitated by governing administration-to-authorities relations exactly where essential."
"This initiative focuses on utilizing gas for electrical power generation to supply vital base load electric power and position gas for a essential enabler of re-industrialisation, even though also making certain continued 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 long-term LNG contracting".
"This will support the gas requirements for Eskom’s eskom vacancies 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 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 the first phase of read more the Sasol-Eskom collaboration will guide the necessary role players and investors required to offer the best prospects read more for South Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.