Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research prospective potential liquified natural gas (LNG) requirements".
That is based on a joint statement by the two organizations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the potential volumes that South Africa demands to establish a practical LNG import market place, combined with the enabling infrastructure, and will be facilitated by federal government-to-authorities relations where vital."
"This initiative focuses on utilizing fuel for electric power generation to supply essential base load energy and position gas to be a essential enabler of re-industrialisation, whilst also making sure continued supply to the industry by unlocking worldwide LNG resources.
"Furthermore, the collaboration will sasol vacancies 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 eskom careers 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 get more info 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.