ESKOM AND SASOL HAVE SIGNED A GAS MOU DOCUMENT

Eskom and Sasol Have Signed A Gas MoU Document

Eskom and Sasol Have Signed A Gas MoU Document

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Friday, September 20, 2024

Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study possible future liquified natural gas (LNG) requirements".

This really 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 requires to determine a practical LNG import current market, together with the enabling infrastructure, and can be facilitated by govt-to-federal government relations in which essential."

"This initiative concentrates on employing gas for power generation to offer crucial base load electrical power and position gas as being a vital enabler of re-industrialisation, even though also ensuring continued supply to the industry by unlocking international 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 engage other state entities to enable an LNG value chain sasol careers in South Africa.

"As part of its revised gas strategy, Sasol is working on enabling the future supply of LNG to South website 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 here 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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