Eskom and Sasol Have Signed A Gas MoU Agreement


Friday, September 20, 2024

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

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

"The collaboration aims to determine the likely volumes that South Africa demands to ascertain a viable LNG import market place, combined with the enabling infrastructure, and can be facilitated by authorities-to-authorities relations in which needed."

"This initiative focuses on utilizing gas for power generation to deliver vital base load electric power and position gas for a essential enabler of re-industrialisation, whilst also making sure 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 more info and here 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 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 required for LNG imports," the statement said.

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