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


Friday, September 20, 2024

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

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

"The collaboration aims to find out the potential volumes that South Africa necessitates to establish a viable LNG import industry, together with the enabling infrastructure, and may be facilitated by federal government-to-govt relations where by essential."

"This initiative focuses on applying gas for electric power generation to supply necessary base load electric power and position gas for a vital enabler of re-industrialisation, when 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 sasol careers 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 website 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 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 eskom learnerships imports," the statement said.

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