Eskom and Sasol Have Signed A Gas MoU Document

Friday, September 20, 2024

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

This is based on a joint statement by the two firms, following the signing ceremony of the MoU on Friday.

"The collaboration aims to ascertain the potential volumes that South Africa requires to determine a feasible LNG import market, together with the enabling infrastructure, and will be facilitated by federal government-to-government relations wherever vital."

"This initiative focuses on applying gas for ability generation to supply necessary base load electrical power and position gas to be a crucial enabler of re-industrialisation, when also making sure ongoing supply to the industry by unlocking global 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 sasol bursaries 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 imports," the statement said.