South African energy giants have joined efforts to find and distribute gas to the South African market.
Speaking at the signing ceremony of an MOU (Memorandum of Understanding), on Friday morning, 20 September 2024 at 11:00am, at Megawatt Park and virtually, Dr Kgosientsho Ramakgopa, Minister of Energy and Electricity, said the two companies, are set to change the energy landscape in SA, to address an emergency, of a projected shortage of gas by 2025.
He said, this is in the sovereign interest of the country, that is chasing targets to decarbonize.
“To achieve the targets set in the Jet investment plan and implementation plan, will require about R1, 5 trillion, by 2027.”
Ramokgopa also said Sasolburg is a key economic hub, although, with one of highest emissions in the country, it employs, some 45% of the communities there, contributing about 5% to the economy.
While Eskom decommissions and repurposes some of its power stations, he said, gas is a transitional resource.
Although finer details of the MoU are still sketchy, the partnership aims to source Liquefied Natural Gas (LNG) and transport it through existing infrastructure in Mozambique, to South African markets.
The Minister said Government to Government discussed are well underway, with Qatar.
Dan Marokane, Chief Executive Officer of Eskom, said efforts to procure 2 Gigawatts (GW) of a combination of Photovoltaic (PV) and battery storage are underway, to supply Komati and Lethabo stations.
He said decisions that impact the energy sector, must be viewed along the dimensions of energy security, affordability and sustainability.
“Eskom strategy is not binary, we need a balance between optimal operation of coal fleet and transition to clean energy. Finding an optimal solution to aid the transition and provide a second life to the stations, will be critical” said Marokane.
About 84% of Eskom’s fleet runs on coal, but is set to decrease by 10GW, in the next decade.
Marokane said based on current technologies, gas is most viable, for clean dispatchable energy and balancing the grid, with low capital costs.
Simon Baloyi, CEO of Sasol, said the company brings its experience of 2 decades, since its shift from coal to gas.
“The South of Mozambique is set to reach a plateu by 2026, but we have found a way to extend to 2027/2028.”
He said this equates to between 100,000 and 200,000 jobs.