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

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

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

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Friday, September 20, 2024

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

This is according to a joint statement by the two organizations, following the signing ceremony from the MoU on Friday.

"The collaboration aims to find out the potential volumes that South Africa demands to ascertain a practical LNG import marketplace, combined with the enabling infrastructure, and will be facilitated by government-to-federal government relations exactly where vital."

"This initiative concentrates on utilizing gasoline for power generation to supply critical base load electric power and position gas like a essential enabler of re-industrialisation, though also making certain continued supply to the industry by unlocking world-wide LNG sasol vacancies 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 eskom 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 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 eskom learnerships 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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