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 business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively discover and study potential future liquified natural gas (LNG) requirements".

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

"The collaboration aims to ascertain the probable volumes that South Africa necessitates to determine a viable LNG import market, together with the enabling infrastructure, and can be facilitated by govt-to-federal government relations exactly where essential."

"This initiative concentrates on making use of fuel for electric power generation to supply critical base load energy and position gas like a key enabler of re-industrialisation, when also ensuring continued supply to the industry 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, and other parts of the eskom 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, get more info 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 eskom 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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