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

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

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

Blog Article


Friday, September 20, 2024

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

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

"The collaboration aims to find out the probable volumes that South Africa needs to ascertain a feasible LNG import current market, together with the enabling infrastructure, and may be facilitated by govt-to-governing administration relations where by necessary."

"This initiative concentrates on applying gasoline for electric power generation to offer crucial base load electrical power and position gas like a important enabler of re-industrialisation, while also guaranteeing continued supply to the sasol industry by unlocking worldwide 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 sasol bursaries 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 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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