- Eskom and Sasol signed an MoU to explore LNG needs for South Africa.
- The initiative will assess LNG volumes and infrastructure for power generation.
- The collaboration aligns with South Africa's Gas Master Plan and energy transition.
- Research findings will guide LNG import commitments and energy market prospects.
MoU Signing
Eskom and Sasol have signed a Memorandum of Understanding (MoU) to explore liquified natural gas (LNG) requirements for South Africa. This collaboration aims to address the country's long-term gas supply needs and establish a viable LNG import market.
Objectives
The partnership will assess the potential LNG volumes required for power generation and the necessary infrastructure. It seeks to position gas as a key component in South Africa's energy transition and decarbonization efforts, contributing to a diversified energy mix.
Government Support
The initiative has the backing of the Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa, who emphasized the importance of LNG solutions for industrial and energy sectors. The collaboration is expected to provide a data-driven basis for gas-fed industrialization.
Regional and Long-term Focus
Aligned with the Gas Master Plan, the MoU will explore sourcing gas within South Africa, the Southern African Development Community (SADC) region, and other parts of Africa. It will also evaluate long-term LNG contracting to support Eskom's coal power station conversion to gas.
Research and Development
The initial phase of research and planning will guide necessary stakeholders and investors, outlining challenges associated with long-term LNG import commitments. The findings will inform the best prospects for South Africa's energy market.
