Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research possible future liquified natural gas (LNG) requirements".
That is based on a joint statement by the two companies, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the potential volumes that South Africa requires to ascertain a practical LNG import industry, along with the enabling infrastructure, and may be facilitated by governing administration-to-authorities relations where by required."
"This initiative focuses on making use of gasoline for electric power generation to offer important base load electric power and position gas to be a key enabler of re-industrialisation, whilst also ensuring continued 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 eskom vacancies 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 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.