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

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

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

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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 study possible future liquified natural gas (LNG) requirements".

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

"The collaboration aims to ascertain the potential volumes that South Africa demands to determine a practical LNG import market place, together with the enabling infrastructure, and can be facilitated by governing administration-to-governing administration relations the place required."

"This initiative focuses on working with gasoline for power generation to deliver crucial base load electrical power and position gas as being a vital enabler of re-industrialisation, even though also ensuring ongoing supply to the market 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 sasol vacancies in the long term. The parties will also engage read more 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 get more info 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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