Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research prospective long term liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two businesses, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the likely volumes that South Africa necessitates to ascertain a viable LNG import current market, combined with the enabling infrastructure, and may be facilitated by authorities-to-governing administration relations wherever essential."
"This initiative concentrates on making use of fuel for electricity generation to deliver crucial base load electrical energy and position gas for a important enabler of re-industrialisation, even though also making sure continued 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 Eskom’s planned coal power station repowering and conversion to gas in get more info the long term. The parties will also engage sasol careers 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 sasol careers 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.