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


Friday, September 20, 2024

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

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

"The collaboration aims to ascertain the possible volumes that South Africa involves to ascertain a feasible LNG import market, together with the enabling infrastructure, and can be facilitated by government-to-federal government relations where essential."

"This initiative concentrates on working with gasoline for electricity generation to deliver necessary base load electric power and position gas like a critical enabler of re-industrialisation, whilst also guaranteeing ongoing 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 African continent, in addition to evaluating long-term LNG contracting".

"This will support the here 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 more info 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 read more imports," the statement said.

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