Eskom and Sasol Have Signed A Gas MoU Agreement


Friday, September 20, 2024

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

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

"The collaboration aims to find out the potential volumes that South Africa involves to determine a practical LNG import market, along with the enabling infrastructure, and will be facilitated by governing administration-to-governing administration relations where necessary."

"This initiative concentrates on applying fuel for electric power generation to offer crucial base load electric power and position gas being a crucial enabler of re-industrialisation, whilst also making sure continued supply to the industry 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 sasol careers 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 sasol learnerships 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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