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

This can be based on a joint statement by the two businesses, following the signing ceremony of the MoU on Friday.

"The collaboration aims to find out the possible volumes that South Africa calls for to establish a feasible LNG import market place, combined with the enabling infrastructure, and can be facilitated by governing administration-to-government relations where necessary."

"This initiative concentrates on working with gas for energy generation to deliver vital base load electrical power and position gas as a critical enabler of re-industrialisation, while also making certain continued 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 sasol 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 click here 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 imports," the statement said.

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