Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research possible potential liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two corporations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the potential volumes that South Africa involves to establish a viable LNG import market place, together with the enabling infrastructure, and will be facilitated by governing administration-to-authorities relations the place important."
"This initiative concentrates on applying fuel for power generation to deliver essential base load electrical energy and position gas like a crucial enabler of re-industrialisation, although also making certain ongoing supply to the marketplace by unlocking world-wide 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 the future supply of LNG to South sasol bursaries Africa by collaborating with companies such as Eskom, existing and future customers, suppliers, and infrastructure developers.
"The research findings from the first here phase of the Sasol-Eskom collaboration will guide the necessary role players and investors required to offer the sasol 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.