Eskom and Sasol Have Signed A Gas MoU Arrangement


Friday, September 20, 2024

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

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

"The collaboration aims to find out the likely volumes that South Africa necessitates to ascertain a viable LNG import industry, combined with the enabling infrastructure, and will be facilitated by govt-to-federal government relations the place needed."

"This initiative focuses on applying gas for ability generation to supply essential base load electrical energy and position gas like a crucial enabler of re-industrialisation, whilst also ensuring ongoing supply to the market by unlocking international LNG resources.

"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the country's sasol 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 will also engage other state entities to enable an LNG here 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 eskom careers 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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