Friday, September 20, 2024

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

This can be according to a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.

"The collaboration aims to determine the prospective volumes that South Africa involves to ascertain a viable LNG import marketplace, together with the enabling infrastructure, and may be facilitated by governing administration-to-governing administration relations the place needed."

"This initiative focuses on applying gasoline for energy generation to deliver necessary base load electric power and position gas like a key enabler of re-industrialisation, when also making certain ongoing 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 transition and decarbonisation," the joint statement read.

The MoU is expected to "explore sourcing gas within South Africa, the Southern African Development eskom vacancies 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 sasol learnerships 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 click here 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.