South African petrochemicals company Sasol (SOLJ.J) and state power utility Eskom announced on Friday that they have agreed to collaborate on exploring the use of liquefied natural gas (LNG) in the country.
As South Africa’s largest coal consumers, both Sasol and Eskom are significant contributors to pollution and are key players in the nation’s transition to cleaner energy.
Eskom, aiming to build on recent improvements in its plant performance after years of power cuts, views LNG as a potential solution.
In a joint statement, the companies said, “The collaboration aims to assess the volumes required to establish a viable LNG import market for South Africa, along with the necessary infrastructure, supported by government-to-government relations as needed.”
The initiative focuses on using gas for power generation to ensure reliable electricity supply and positioning LNG as a catalyst for re-industrialisation, they added.
When asked about potential LNG suppliers, South Africa’s Electricity and Energy Minister Kgosientsho Ramokgopa mentioned Qatar as a leading option due to its strong historical ties with Sasol and its substantial gas reserves.
Neither Sasol nor Eskom provided details on a timeline or specific joint projects.