Friday, September 20, 2024
Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study prospective potential liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two providers, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the potential volumes that South Africa calls for to ascertain a practical LNG import industry, along with the enabling infrastructure, and may be facilitated by authorities-to-government relations exactly where necessary."
"This initiative concentrates on utilizing gasoline for power generation to supply critical base load electricity and position gas being a vital enabler of re-industrialisation, while also making certain continued supply to the marketplace by unlocking world wide 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 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 sasol careers 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 more info required to offer the best prospects for South Africa's energy market, while outlining the challenges click here associated with the long-term commitments required for LNG imports," the statement said.