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 discover and investigate possible potential liquified natural gas (LNG) requirements".

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

"The collaboration aims to find out the probable volumes that South Africa calls for to determine a practical LNG import marketplace, combined with the enabling infrastructure, and can be facilitated by federal government-to-govt relations where essential."

"This initiative focuses on utilizing gas for electric power generation to offer vital base load energy and position gas as a vital enabler of re-industrialisation, though also guaranteeing 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 more info 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 eskom 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 here 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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