ESKOM AND SASOL HAVE SIGNED A GAS MOU ARRANGEMENT

Eskom and Sasol Have Signed A Gas MoU Arrangement

Eskom and Sasol Have Signed A Gas MoU Arrangement

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Friday, September 20, 2024

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

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

"The collaboration aims to determine the probable volumes that South Africa calls for to establish a feasible LNG import market, combined with the enabling infrastructure, and may be facilitated by government-to-governing administration relations the place required."

"This initiative concentrates on applying gasoline for power generation to supply essential base load electric power and position gas to be a crucial enabler of re-industrialisation, when also making sure 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 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 sasol learnerships 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 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 sasol vacancies 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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