Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research potential future liquified natural gas (LNG) requirements".
That is based on a joint statement by the two organizations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the likely volumes that South Africa involves to ascertain a feasible LNG import industry, together with the enabling infrastructure, and can be facilitated by governing administration-to-govt relations the place essential."
"This initiative concentrates on making use of fuel for electricity generation to provide vital base load electrical power and position gas to be a crucial enabler of re-industrialisation, while also guaranteeing ongoing supply to the market 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 click here the African continent, in addition to evaluating long-term LNG contracting".
"This will support the gas requirements for click here Eskom’s planned coal power station repowering and conversion to gas in the here 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.