Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate prospective long term liquified natural gas (LNG) requirements".
That is based on a joint statement by the two providers, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the prospective volumes that South Africa needs to establish a feasible LNG import market, combined with the enabling infrastructure, and will be facilitated by governing administration-to-governing administration relations where by necessary."
"This initiative focuses on working with gas for electric power generation to supply necessary base load electrical energy and position gas for a key enabler of re-industrialisation, whilst also making certain continued supply to the market by unlocking worldwide LNG resources.
"Furthermore, the here 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 eskom 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 sasol 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, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.