ESKOM AND SASOL HAVE SIGNED A GAS-FOR-POWER MOU AGREEMENT

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

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

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Friday, September 20, 2024

Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research prospective future liquified natural gas (LNG) requirements".

That is according to a joint statement by the two providers, following the signing ceremony of the MoU on Friday.

"The collaboration aims to ascertain the prospective volumes that South Africa requires to ascertain a practical LNG import industry, together with the enabling infrastructure, and will be facilitated by government-to-federal government relations wherever essential."

"This initiative focuses on making use of gasoline for ability generation to deliver essential base load electrical power and position gas for a critical enabler of re-industrialisation, though also making sure ongoing supply to the marketplace by unlocking worldwide 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 eskom Africa by collaborating with companies such as Eskom, existing and future customers, suppliers, and read more 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 check here 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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