Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate potential potential liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two businesses, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the probable volumes that South Africa requires to determine a viable LNG import market, together with the enabling infrastructure, and will be facilitated by federal government-to-federal government relations where essential."
"This initiative focuses on working with gasoline for ability generation to supply necessary base load electrical power and position gas as being a vital enabler of re-industrialisation, although also ensuring continued 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 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 here 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, sasol careers 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 eskom careers with the long-term commitments required for LNG imports," the statement said.