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 investigate and study possible long term liquified natural gas (LNG) requirements".

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

"The collaboration aims to determine the possible volumes that South Africa calls for to ascertain a viable LNG import sector, together with the enabling infrastructure, and can be facilitated by government-to-government relations wherever required."

"This initiative concentrates on making use of gas for power generation to offer important base load electrical energy and position gas as a essential enabler of re-industrialisation, whilst also making sure continued supply to the marketplace by unlocking global 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 more info 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. 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 eskom 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 eskom careers long-term commitments required for LNG imports," the statement said.

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