Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and investigate possible future liquified natural gas (LNG) requirements".
That is according to a joint statement by the two providers, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the potential volumes that South Africa necessitates to establish a feasible LNG import current market, along with the enabling infrastructure, and will be facilitated by government-to-authorities relations wherever necessary."
"This initiative focuses on utilizing gasoline for ability generation to supply vital base load electric power and position gas as being a important enabler of re-industrialisation, when also making certain continued supply to the marketplace by unlocking world-wide LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable read more the country's energy transition and decarbonisation," the joint statement read.
The MoU is expected to "explore sourcing gas within South Africa, the click here 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 sasol vacancies 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 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.