ESKOM AND SASOL HAVE SIGNED A GAS-FOR-FUEL MOU DOCUMENT

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

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

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Friday, September 20, 2024

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

That is according to a joint statement by the two firms, following the signing ceremony of the MoU on Friday.

"The collaboration aims to ascertain the probable volumes that South Africa requires to ascertain a practical LNG import market place, along with the enabling infrastructure, and can be facilitated by govt-to-authorities relations where needed."

"This initiative focuses on working with gas for electric power generation to provide necessary base load electrical power and position gas to be a crucial enabler of re-industrialisation, while also making certain ongoing supply to the industry by unlocking global 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 click here future supply of LNG to South Africa by collaborating with companies such as Eskom, existing and future customers, suppliers, and infrastructure sasol bursaries 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 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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