Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research potential long term liquified natural gas (LNG) requirements".
That is according to a joint statement by the two providers, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the likely volumes that South Africa needs to determine a viable LNG import marketplace, along with the enabling infrastructure, and will be facilitated by governing administration-to-government relations where essential."
"This initiative concentrates on employing gasoline for electricity generation to offer crucial base load electrical energy and position gas like a important enabler of re-industrialisation, while also guaranteeing continued supply to the industry by unlocking world-wide LNG resources.
"Furthermore, the collaboration will contribute sasol vacancies to enhancing South Africa’s energy mix and enable the country's energy transition and decarbonisation," the joint statement read.
The MoU here 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 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 eskom careers 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.