Friday, September 20, 2024

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

This really is according to a joint statement by the two corporations, following the signing ceremony from 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 may be facilitated by government-to-governing administration relations where by important."

"This initiative focuses on using gasoline for electrical power generation to deliver crucial base load energy and position gas as being a crucial enabler of re-industrialisation, even though also ensuring continued supply to the marketplace by unlocking world 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 sasol bursaries 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 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 check here Africa's energy market, while outlining the challenges associated with the long-term sasol learnerships commitments required for LNG imports," the statement said.