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


Friday, September 20, 2024

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

That is based on a joint statement by the two businesses, following the signing ceremony from the MoU on Friday.

"The collaboration aims to ascertain the likely volumes that South Africa involves to ascertain a viable LNG import sector, together with the enabling infrastructure, and can be facilitated by govt-to-authorities relations where vital."

"This initiative focuses on using gasoline for energy generation to deliver crucial base load electrical energy and position gas as a essential enabler of re-industrialisation, whilst also guaranteeing continued supply to the marketplace by unlocking global LNG resources.

"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the country's energy more info transition and decarbonisation," the joint statement read.

The MoU is expected to "explore sourcing gas within South Africa, the more info 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 more info 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 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.

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