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".
This really is based on a joint statement by the two firms, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the likely volumes that South Africa calls for to determine a viable LNG import industry, together with the enabling infrastructure, and may be facilitated by govt-to-governing administration relations where vital."
"This initiative focuses on employing gasoline for electricity generation to offer vital base load electric power and position gas to be a critical enabler of re-industrialisation, even though also making certain continued supply to the industry by unlocking worldwide LNG resources.
"Furthermore, the eskom 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 eskom careers 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 more info 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 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.