Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research potential potential liquified natural gas (LNG) requirements".
That is according to a joint statement by the two organizations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the possible volumes that South Africa requires to determine a feasible LNG import marketplace, together with the enabling infrastructure, and can be facilitated by governing administration-to-federal government relations where by important."
"This initiative concentrates on making use of fuel for energy generation to deliver necessary base load electricity and position gas to be a critical enabler of re-industrialisation, although also making sure continued supply to the marketplace 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 sasol bursaries African Development Community region, and other parts of the African continent, in addition to evaluating long-term LNG contracting".
"This will support get more info 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 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.