ESKOM AND SASOL HAVE SIGNED A GAS-FOR-FUEL MOU ARRANGEMENT

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

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

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Friday, September 20, 2024

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

That is based on a joint statement by the two firms, following the signing ceremony of 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, together with the enabling infrastructure, and may be facilitated by authorities-to-government relations the place needed."

"This initiative focuses on making use of gasoline for electricity generation to supply crucial base load electrical power and position gas as a important enabler of re-industrialisation, whilst also making sure ongoing supply to the market by unlocking international 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 sasol vacancies 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 sasol careers 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 check here market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.

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