Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate prospective future liquified natural gas (LNG) requirements".
This is based on a joint statement by the two providers, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the likely volumes that South Africa involves to establish a viable LNG import current market, combined with the enabling infrastructure, and will be facilitated by government-to-federal government relations where needed."
"This initiative concentrates on using gas for electricity generation to offer vital base load electric power and position gas to be a key enabler of re-industrialisation, whilst also guaranteeing ongoing supply to the market by unlocking worldwide 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 revised gas strategy, Sasol is working on enabling eskom careers 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 sasol collaboration will guide the necessary role get more info 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.