Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate prospective potential liquified natural gas (LNG) requirements".
This can be according to 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 demands to determine a feasible LNG import current market, together with the enabling infrastructure, and can be facilitated by federal government-to-governing administration relations wherever vital."
"This initiative focuses on employing gas for electricity generation to deliver vital base load electric power and position gas like a critical enabler of re-industrialisation, even though also ensuring ongoing supply to the industry by unlocking world LNG resources.
"Furthermore, the collaboration will contribute to enhancing South eskom vacancies 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 Eskom’s planned coal sasol careers 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 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.