Eskom and Sasol Have Signed A Gas-For-Power MoU Document


Friday, September 20, 2024

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

That is based on a joint statement by the two firms, following the signing ceremony from the MoU on Friday.

"The collaboration aims to find out the potential volumes that South Africa needs to ascertain a viable LNG import industry, along with the enabling infrastructure, and will be facilitated by govt-to-govt relations wherever important."

"This initiative focuses on using fuel for electricity generation to supply essential base load electricity and position gas for a crucial enabler of re-industrialisation, while also guaranteeing ongoing supply to the marketplace by unlocking world LNG resources.

"Furthermore, the collaboration will contribute to enhancing South Africa’s energy eskom learnerships 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 learnerships 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.

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