Eskom and Sasol Have Signed A Gas MoU Arrangement

Friday, September 20, 2024

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

This can be according to a joint statement by the two providers, following the signing ceremony of the MoU on Friday.

"The collaboration aims to find out the potential volumes that South Africa involves to establish a feasible LNG import current market, along with the enabling infrastructure, and may be facilitated by authorities-to-government relations where necessary."

"This initiative focuses on applying gas for electrical power generation to provide critical base load energy and position gas being a key enabler of re-industrialisation, when also ensuring ongoing 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 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 more info 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.