Eskom, Sasol sign natural gas research agreement
Minister of Electricity and Energy Kgosientsho Ramokgopa says Eskom will need to decommission or repurpose some of the aging power stations over the next decade.
On Friday, Eskom and Sasol signed a Memorandum of Understanding to explore potential future liquefied natural gas requirements.
It is meant to determine the potential volumes that South Africa requires to establish a viable Liquified Natural Gas import market along with the enabling infrastructure.
Ramokgopa says this collaboration will also allow the country to find a solution for gas users who require longer term certainty of supply beyond this decade.
“The idea of repurposing is attractive as long as we are able to find that fuel source. We think that gas presents that opportunity as a transitional fuel source from an emissions point of view.
“So, what we are presenting here is opportunity for the country if the two entities were to come together in our quest to aggregate the demand of gas to support the South African economy.”
Ramokgopa says his department is committed to reducing the greenhouse gas emissions by anything between 350 to 420 megatons of CO2 equivalent per year.
Sasol CEO Simon Baloyi says they are committed to enhancing regional energy security.
“We as a company recognise the need and urgency for South Africa to transition as it is still a coal-based economy. However, that transition needs to be at the right pace to make sure that we balance our nation’s needs for development, energy security and long-term sustainability.”
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