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


Friday, September 20, 2024

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

That is based on a joint statement by the two corporations, following the signing ceremony of the MoU on Friday.

"The collaboration aims to determine the potential volumes that South Africa requires to determine a feasible LNG import market, together with the enabling infrastructure, and will be facilitated by federal government-to-government relations where by needed."

"This initiative focuses on working with gas for electric power generation to supply critical base load electric power and position gas like a vital enabler of re-industrialisation, although also making sure continued supply to the marketplace 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 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 sasol careers customers, suppliers, and infrastructure developers.

"The research click here 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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