Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and investigate prospective long term liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two organizations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to find out the prospective volumes that South Africa needs to establish a practical LNG import market place, combined with the enabling infrastructure, and will be facilitated by authorities-to-governing administration relations where essential."
"This initiative concentrates on making use of fuel for electricity generation to supply essential base load energy and position gas for a important enabler of re-industrialisation, though also making certain ongoing supply to the market by unlocking world wide 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. website 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 get more info infrastructure developers.
"The research findings from the first phase of the sasol bursaries 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.