Eskom and Sasol Have Signed A Gas-For-Fuel MoU Document


Friday, September 20, 2024

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

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

"The collaboration aims to determine the prospective volumes that South Africa involves to ascertain a viable LNG import industry, along with the enabling infrastructure, and will be facilitated by govt-to-govt relations the place needed."

"This initiative focuses on applying fuel for electric power generation to offer crucial base load electrical energy and position gas as being a vital enabler of re-industrialisation, when also ensuring 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 sasol other parts of the African sasol vacancies 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 sasol bursaries 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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