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


Friday, September 20, 2024

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

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

"The collaboration aims to find out the prospective volumes that South Africa requires to ascertain a practical LNG import market place, combined with the enabling infrastructure, and can be facilitated by governing administration-to-authorities relations the place necessary."

"This initiative focuses on applying gas for electricity generation to offer necessary base load electrical power and position gas being a vital enabler of re-industrialisation, though also making sure ongoing supply to the industry by unlocking world wide LNG resources.

"Furthermore, the collaboration will contribute to enhancing sasol careers 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 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 eskom 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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