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


Friday, September 20, 2024

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

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

"The collaboration aims to determine the prospective volumes that South Africa demands to establish a viable LNG import market place, combined with the enabling infrastructure, and can be facilitated by authorities-to-federal government relations the place needed."

"This initiative focuses on making use of gas for energy generation to provide critical base load energy and position gas to be a critical enabler of re-industrialisation, although also ensuring ongoing supply to the market 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 the long term. The parties will click here 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 get more info 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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