Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research potential potential liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two corporations, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the likely volumes that South Africa requires to determine a viable LNG import sector, together with the enabling infrastructure, and may be facilitated by governing administration-to-authorities relations exactly where necessary."
"This initiative concentrates on applying fuel for electricity generation to deliver necessary base load electricity and position gas as a important enabler of re-industrialisation, even though also making sure ongoing supply to the marketplace by unlocking world 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 sasol 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, suppliers, and infrastructure developers.
"The research findings from the first phase of the Sasol-Eskom collaboration sasol vacancies 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.