Friday, September 20, 2024

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

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

"The collaboration aims to determine the likely volumes that South Africa calls for to determine a practical LNG import marketplace, combined with the enabling infrastructure, and may be facilitated by govt-to-governing administration relations exactly where important."

"This initiative concentrates on applying gas for energy generation to supply vital base load energy and position gas as being a crucial enabler of re-industrialisation, even though also guaranteeing ongoing supply to the marketplace by unlocking world wide 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, read more 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 eskom careers 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 more info LNG imports," the statement said.