Sasol And The Central Energy Fund Have Signed A Memorandum Of Understanding For Gas Production In South Africa.

Sasol and the Central Energy Fund (CEF) have signed a memorandum of understanding (MoU) to work on the development of gas solutions in South Africa.

Gas is an important part of South Africa’s energy mix, and its importance is likely to expand in the future. Future gas supply alternatives, as well as the enabling infrastructure required to sustain and grow the gas market, will be key focus areas. Both corporations plan to look into establishing a number of low-cost gas import stations across the country.

“Gas is instrumental in enabling a just energy transition in South Africa and requires immediate attention to introduce additional supply to South Africa. Currently, the country’s gas supply comes from the Pande-Temane gas fields in Mozambique, which will need to be supplemented in the long term, as these reserves begin to mature,” said Sasol executive vice-president for energy business Priscillah Mabelane.

According to preliminary global benchmark case studies, countries with rising gas demand have increased the number of import locations to supply regional markets via pipeline. India, for example, has six liquefied natural gas (LNG) ports in service, with another four under construction and expected to be ready by 2023.This approach has significant potential for socio-economic development around these import locations.

Both Sasol and CEF have dedicated resources, overseen by a senior level steering committee, to collaborate in exploring options to develop and expand the southern African natural gas market.