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

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

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

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Friday, September 20, 2024

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

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

"The collaboration aims to ascertain the potential volumes that South Africa involves to determine a viable LNG import marketplace, combined with the enabling infrastructure, and may be facilitated by authorities-to-federal government relations where by needed."

"This initiative concentrates on making use of gasoline for electricity generation to supply vital base load electricity and position gas like a crucial enabler of re-industrialisation, even though also making certain continued supply to the market 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 eskom learnerships 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 eskom learnerships 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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