Friday, September 20, 2024

Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate possible future liquified natural gas (LNG) requirements".

That is according to a joint statement by the two firms, following the signing ceremony of the MoU on Friday.

"The collaboration aims to ascertain the likely volumes that South Africa demands to determine a feasible LNG import industry, along with the enabling infrastructure, and can be facilitated by authorities-to-governing administration relations the place essential."

"This initiative concentrates on utilizing gasoline for power generation to offer vital base load electric power and position gas like a key enabler of re-industrialisation, when also making certain ongoing supply to the market by unlocking world 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 sasol vacancies gas strategy, Sasol is working on enabling read more the future supply of LNG to South Africa by collaborating with companies such as Eskom, existing and get more info 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.