Friday, September 20, 2024

Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research potential future liquified natural gas (LNG) requirements".

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

"The collaboration aims to determine the possible volumes that South Africa calls for to ascertain a viable LNG import marketplace, along with the enabling infrastructure, and may be facilitated by authorities-to-government relations where necessary."

"This initiative concentrates on making use of gas for ability generation to offer important base load electrical energy and position gas as a critical enabler of re-industrialisation, although also making sure continued supply to the marketplace by unlocking international more info 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 sasol careers 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 eskom learnerships 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 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.