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


Friday, September 20, 2024

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

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

"The collaboration aims to determine the possible volumes that South Africa needs to establish a feasible LNG import sector, combined with the enabling infrastructure, and may be facilitated by government-to-govt relations exactly where important."

"This initiative focuses on making use of fuel for electricity generation to provide vital base load electric power and position gas as being a critical enabler of re-industrialisation, whilst also making sure ongoing 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 eskom other state entities to enable here 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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