Eskom and Sasol Have Signed A Gas MoU Agreement


Friday, September 20, 2024

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

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

"The collaboration aims to ascertain the possible volumes that South Africa requires to establish a viable LNG import sector, along with the enabling infrastructure, and will be facilitated by govt-to-federal government relations where by important."

"This initiative focuses on working with fuel for electricity generation to deliver important base load electricity and position gas to be a critical enabler of re-industrialisation, whilst also ensuring continued supply to the industry by unlocking worldwide 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 Africa.

"As part of its sasol careers 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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