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


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".

This can be based on a joint statement by the two organizations, following the signing ceremony of the MoU on Friday.

"The collaboration aims to ascertain the prospective volumes that South Africa calls for to establish a practical LNG import industry, along with the enabling infrastructure, and may be facilitated by government-to-govt relations the place vital."

"This initiative focuses on making use of gas for electric power generation to provide vital base load electricity and position gas being a critical enabler of re-industrialisation, while also guaranteeing ongoing supply to the market 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 term. The more info 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 sasol learnerships 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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