Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement


Friday, September 20, 2024

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

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

"The collaboration aims to determine the potential volumes that South Africa calls for to determine a viable LNG import market, together with the enabling infrastructure, and may be facilitated by governing administration-to-authorities relations where by important."

"This initiative focuses on applying gas for electrical power generation to provide essential base load electricity and position gas to be a essential enabler of re-industrialisation, whilst also making sure continued supply to the industry 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 sasol careers 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 sasol bursaries 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 sasol 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 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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