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

That is based on a joint statement by the two organizations, following the signing ceremony of the MoU on Friday.

"The collaboration aims to ascertain the probable volumes that South Africa requires to determine a feasible LNG import marketplace, together with the enabling infrastructure, and can be facilitated by federal government-to-government relations where by needed."

"This initiative focuses on using fuel for ability generation to provide critical base load electric power and position gas being a vital enabler of re-industrialisation, although also making sure continued supply to the industry by unlocking international 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 sasol bursaries 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 entities to more info enable an LNG value chain in South Africa.

"As part of its eskom learnerships 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 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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