Friday, September 20, 2024

Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research potential potential liquified natural gas (LNG) requirements".

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

"The collaboration aims to ascertain the potential volumes that South Africa needs to ascertain a practical LNG import sector, combined with the enabling infrastructure, and will be facilitated by federal government-to-authorities relations wherever needed."

"This initiative focuses on applying gasoline for electrical power generation to provide critical base load electric power and position gas being a important enabler of re-industrialisation, though also making certain ongoing supply to the marketplace 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 joint statement read.

The MoU is expected to sasol vacancies "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 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 get more info the necessary role players and investors required to offer the best prospects for South Africa's energy market, while outlining the challenges associated more info with the long-term commitments required for LNG imports," the statement said.