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


Friday, September 20, 2024

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

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

"The collaboration aims to ascertain the probable volumes that South Africa needs to ascertain a practical LNG import market, combined with the enabling infrastructure, and will be facilitated by govt-to-govt relations in which important."

"This initiative concentrates on using gasoline for power generation to supply critical base load electric power and position gas being a important enabler of re-industrialisation, when also making sure ongoing supply to the market by unlocking global LNG resources.

"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the get more info 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 in the long term. The parties sasol learnerships 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 here 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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