Eskom and Sasol Have Signed A Gas MoU Document


Friday, September 20, 2024

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

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

"The collaboration aims to ascertain the potential volumes that South Africa involves to determine a practical LNG import market, along with the enabling infrastructure, and will be facilitated by governing administration-to-government relations exactly where required."

"This initiative focuses on utilizing gas for power generation to deliver crucial base load electrical power and position gas being a crucial enabler of re-industrialisation, whilst also making sure continued supply to the market by unlocking world wide 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 sasol 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 sasol bursaries planned coal power station repowering and conversion more info 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 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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