Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study possible potential liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two firms, 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, along with the enabling infrastructure, and may be facilitated by federal government-to-governing administration relations wherever needed."
"This initiative focuses on working with gas for power generation to offer important base load electricity and position gas for a important enabler of re-industrialisation, though also making certain ongoing supply to the market 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 get more info 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 more info 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 eskom learnerships 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.