ESKOM AND SASOL HAVE SIGNED A GAS-FOR-FUEL MOU ARRANGEMENT

Eskom and Sasol Have Signed A Gas-For-Fuel MoU Arrangement

Eskom and Sasol Have Signed A Gas-For-Fuel MoU Arrangement

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Friday, September 20, 2024

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

This is according to a joint statement by the two providers, following the signing ceremony of the MoU on Friday.

"The collaboration aims to find out the likely volumes that South Africa demands to ascertain a feasible LNG import sector, along with the enabling infrastructure, and will be facilitated by governing administration-to-government relations in which important."

"This initiative concentrates on utilizing fuel for electrical power generation to deliver vital base load electrical power and position gas as being a critical enabler of re-industrialisation, although also making sure continued supply to the industry 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 check here decarbonisation," the joint statement read.

The MoU is expected to "explore sourcing gas within South Africa, the Southern click here 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 here 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.

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