ESKOM AND SASOL HAVE SIGNED A GAS-FOR-POWER MOU DOCUMENT

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

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

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Friday, September 20, 2024

Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study possible potential liquified natural gas (LNG) requirements".

That is according to a joint statement by the two corporations, following the signing ceremony from the MoU on Friday.

"The collaboration aims to find out the prospective volumes that South Africa demands to determine a feasible LNG import marketplace, together with the enabling infrastructure, and can be facilitated by govt-to-authorities relations where by needed."

"This initiative concentrates on making use of fuel for power generation to offer critical base load electrical power and position gas as being a critical enabler of re-industrialisation, whilst also guaranteeing ongoing supply to the market check here 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 eskom 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 sasol 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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