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


Friday, September 20, 2024

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

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

"The collaboration aims to find out the possible volumes that South Africa needs to determine a practical LNG import market place, along with the enabling infrastructure, and may be facilitated by governing administration-to-federal government relations where by vital."

"This initiative focuses on utilizing fuel for electrical power generation to deliver essential base load electricity and position gas for a crucial enabler of re-industrialisation, when also ensuring continued 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 eskom careers 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 eskom learnerships 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 offer the best prospects for South Africa's energy market, while outlining the challenges associated with the long-term commitments here required for LNG imports," the statement said.

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