Friday, September 20, 2024

Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research possible long term liquified natural gas (LNG) requirements".

This can be according to a joint statement by the two firms, following the signing ceremony from the MoU on Friday.

"The collaboration aims to find out the prospective volumes that South Africa calls for to establish a practical LNG import market place, combined with the enabling infrastructure, and will be facilitated by governing administration-to-governing administration relations where by needed."

"This initiative focuses on applying gas for power generation to offer crucial base load electrical energy and position gas as a essential enabler of re-industrialisation, although also guaranteeing ongoing supply to the industry by unlocking world wide LNG resources.

"Furthermore, the collaboration will contribute to enhancing click here 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 here 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, get more info 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.