ESKOM AND SASOL HAVE SIGNED A GAS-FOR-FUEL MOU ARRANGEMENT

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

Eskom and Sasol Have Signed A Gas-For-Fuel 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 investigate prospective future liquified natural gas (LNG) requirements".

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

"The collaboration aims to determine the possible volumes that South Africa demands to ascertain a practical LNG import market place, along with the enabling infrastructure, and may be facilitated by federal government-to-federal government relations where required."

"This initiative concentrates on making use of fuel for energy generation to offer important base load energy and position gas like a critical enabler of re-industrialisation, whilst also guaranteeing ongoing supply to the industry 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 sasol 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 as Eskom, existing and future customers, suppliers, and infrastructure developers.

"The research findings from get more info 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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