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

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

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

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Friday, September 20, 2024

Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and research possible long term liquified natural gas (LNG) requirements".

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

"The collaboration aims to determine the possible volumes that South Africa necessitates to establish a viable LNG import current market, together with the enabling infrastructure, and can be facilitated by authorities-to-federal government relations where needed."

"This initiative concentrates on applying gasoline for power generation to supply critical base load electrical power and position gas as a important enabler of re-industrialisation, even though also guaranteeing ongoing supply to the marketplace 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 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 get more info 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 read more 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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