Eskom and Sasol Have Signed A Gas MoU Agreement


Friday, September 20, 2024

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

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

"The collaboration aims to determine the prospective volumes that South Africa necessitates to determine a practical LNG import market, along with the enabling infrastructure, and may be facilitated by federal government-to-govt relations wherever important."

"This initiative focuses on making use of gas for ability generation to offer crucial base load electrical power and position gas like a key enabler of re-industrialisation, though also making certain ongoing supply to the market by unlocking world 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 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 read more outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.

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