ESKOM AND SASOL HAVE SIGNED A GAS-FOR-FUEL MOU ARRANGEMENT

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

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

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Friday, September 20, 2024

Eskom and energy and chemical organization, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and study possible long term liquified natural gas (LNG) requirements".

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

"The collaboration aims to determine the prospective volumes that South Africa necessitates to determine a practical LNG import sector, along with the enabling infrastructure, and may be facilitated by federal government-to-govt relations wherever vital."

"This initiative concentrates on employing gasoline for electrical power generation to supply important base load electric power and position gas for a crucial enabler of re-industrialisation, while also guaranteeing continued supply to the marketplace 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 read more of the African continent, in addition to evaluating long-term LNG here contracting".

"This will support the gas requirements for Eskom’s planned coal power station repowering and conversion to gas eskom vacancies 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 challenges associated with the long-term commitments required for LNG imports," the statement said.

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