Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research possible long term liquified natural gas (LNG) requirements".
This can be according to a joint statement by the two firms, following the signing ceremony of the MoU on Friday.
"The collaboration aims to ascertain the probable volumes that South Africa necessitates to ascertain a viable LNG import sector, combined with the enabling infrastructure, and will be facilitated by federal government-to-government relations where by needed."
"This initiative concentrates on employing gas for electric power generation to supply critical base load energy and position gas as being a essential enabler of re-industrialisation, while also ensuring continued supply to the market by unlocking international LNG resources.
"Furthermore, the sasol learnerships 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 eskom learnerships 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.