Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and study prospective future liquified natural gas (LNG) requirements".
That 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 prospective volumes that South Africa calls for to determine a viable LNG import market place, together with the enabling infrastructure, and will be facilitated by authorities-to-govt relations where by essential."
"This initiative focuses on utilizing gasoline for electricity generation to deliver critical base load electrical energy and position gas like a essential enabler of re-industrialisation, though also making sure ongoing supply to the marketplace 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 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 sasol bursaries on enabling the future supply of LNG to South Africa read more 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.