Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement


Friday, September 20, 2024

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

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

"The collaboration aims to find out the likely volumes that South Africa involves to ascertain a viable LNG import market place, along with the enabling infrastructure, and may be facilitated by federal government-to-federal government relations in which essential."

"This initiative concentrates on making use of fuel for electricity generation to provide critical base load electric power and position gas like a key enabler of re-industrialisation, when also ensuring ongoing supply to the industry by unlocking worldwide LNG resources.

"Furthermore, the collaboration will contribute to eskom 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, eskom learnerships 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 eskom learnerships 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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