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

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

Eskom and Sasol Have Signed A Gas-For-Power 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 investigate and investigate potential long term liquified natural gas (LNG) requirements".

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

"The collaboration aims to ascertain the potential volumes that South Africa demands to establish a feasible LNG import market, along with the enabling infrastructure, and can be facilitated by federal government-to-govt relations where by needed."

"This initiative concentrates on working with fuel for power generation to provide important base load electric power and position gas for a critical enabler of re-industrialisation, while also making sure ongoing supply to the industry by unlocking global LNG resources.

"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the country's energy transition and decarbonisation," the sasol bursaries 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 eskom learnerships 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 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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