Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study possible long term liquified natural gas (LNG) requirements".
This is based on a joint statement by the two companies, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the potential volumes that South Africa demands to establish a practical LNG import industry, along with the enabling infrastructure, and may be facilitated by government-to-govt relations the place essential."
"This initiative concentrates on employing gas for ability generation to offer important base load electric power and position gas like a key enabler of re-industrialisation, when also making sure continued supply to the industry by unlocking world 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 get more info 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 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 get more info 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 check here said.