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


Friday, September 20, 2024

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

This can be based on a joint statement by the two organizations, following the signing ceremony from the MoU on Friday.

"The collaboration aims to ascertain the likely volumes that South Africa needs to ascertain a feasible LNG import sector, along with the enabling infrastructure, and will be facilitated by governing administration-to-government relations exactly where required."

"This initiative focuses on utilizing gas for energy generation to provide essential base load energy and position gas as being a important enabler of re-industrialisation, while also guaranteeing 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 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 eskom 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," more info the statement said.

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