Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover 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 from the MoU on Friday.
"The collaboration aims to find out the prospective volumes that South Africa necessitates to ascertain a viable LNG import market place, along with the enabling infrastructure, and may be facilitated by governing administration-to-govt relations in which necessary."
"This initiative concentrates on utilizing gasoline for energy generation to deliver crucial base load energy and position gas as being a essential enabler of re-industrialisation, though also ensuring continued supply to the market by unlocking international 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, website 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 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, check here while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.