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


Friday, September 20, 2024

Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate possible long term liquified natural gas (LNG) requirements".

This really is based on a joint statement by the two firms, following the signing ceremony of the MoU on Friday.

"The collaboration aims to find out the possible volumes that South Africa needs to establish a feasible LNG import industry, combined with the enabling infrastructure, and may be facilitated by govt-to-federal government relations exactly where important."

"This initiative concentrates on making use of fuel for electrical power generation to provide vital base load electrical power and position gas as being a vital enabler of re-industrialisation, even though also making sure continued supply to the industry by unlocking global 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 sasol learnerships 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 sasol vacancies 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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