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 organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and research prospective long term liquified natural gas (LNG) requirements".

This can be based on a joint statement by the two firms, following the signing ceremony from the MoU on Friday.

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

"This initiative concentrates on using gas for electricity generation to offer vital base load electricity and position gas as being a critical enabler of re-industrialisation, though also ensuring ongoing supply to the market 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 click here 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 sasol bursaries 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 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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