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


Friday, September 20, 2024

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

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

"The collaboration aims to determine the prospective volumes that South Africa involves to establish a feasible LNG import industry, together with the enabling infrastructure, and will be facilitated by federal government-to-governing administration relations exactly where essential."

"This initiative focuses on applying gas for electric power generation to deliver important base load electricity and position gas for a key enabler of re-industrialisation, whilst also ensuring ongoing supply to the marketplace by unlocking international 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 South sasol learnerships 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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