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 explore and research possible long term liquified natural gas (LNG) requirements".

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

"The collaboration aims to determine the likely volumes that South Africa demands to establish a viable LNG import market place, together with the enabling infrastructure, and may be facilitated by authorities-to-federal government relations wherever important."

"This initiative concentrates on employing gasoline for electrical power generation to supply important base load electrical power and position gas as being a key enabler of re-industrialisation, while also guaranteeing 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 read more 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 sasol learnerships 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 investors required to offer the best prospects for South Africa's energy market, while outlining the check here challenges associated with the long-term commitments required for LNG imports," the statement said.

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