Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and study potential long term liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the likely volumes that South Africa involves to ascertain a practical LNG import market place, together with the enabling infrastructure, and can be facilitated by federal government-to-government relations the place required."
"This initiative focuses on applying gas for electric power generation to deliver important base load energy and position gas as being a important enabler of re-industrialisation, although also guaranteeing continued supply to the marketplace 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. more info The parties will also engage other state entities to enable an LNG value chain in South Africa.
"As part of its revised eskom 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.