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


Friday, September 20, 2024

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

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

"The collaboration aims to find out the prospective volumes that South Africa calls for to ascertain a practical LNG import current market, combined with the enabling infrastructure, and will be facilitated by authorities-to-government relations wherever required."

"This initiative concentrates on employing gas for ability generation to supply essential base load energy and position gas being a important enabler of re-industrialisation, though 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 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 eskom careers 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 eskom careers for South Africa's energy market, while outlining the challenges associated with the long-term commitments required for website LNG imports," the statement said.

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