Friday, September 20, 2024
Eskom and energy and chemical enterprise, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and investigate potential long term liquified natural gas (LNG) requirements".
This really is based on a joint statement by the two corporations, following the signing ceremony of the MoU on Friday.
"The collaboration aims to determine the probable volumes that South Africa requires to ascertain a viable LNG import market, along with the enabling infrastructure, and may be facilitated by govt-to-govt relations where needed."
"This initiative concentrates on using gasoline for energy generation to supply crucial base load electricity and position gas to be a crucial enabler of re-industrialisation, whilst 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 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 here 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 sasol learnerships from the first phase of the Sasol-Eskom collaboration will guide the necessary role players and investors required to offer the best sasol bursaries prospects for South Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.