Sasol and the Central Energy Fund (CEF) have signed a memorandum of understanding (MOU) to collaborate on accelerating the development of gas solutions in South Africa. This agreement brings together South Africa’s two leading pioneers of the gas industry that possess deep experience in operating across the gas value chain, from exploration to downstream operations. At the core of achieving our strategic mandate of ensuring security of supply is domestic job creation and an approach to the just energy transition that fosters increasing domestic value addition. In this regard, gas remains a critical component in our country’s just energy transition journey, and our continued collaboration with Sasol in unlocking growth in the gas space remains critical for us in contributing to the achievement of an optimal energy mix.
Gas is a significant contributor to South Africa’s energy mix and its importance is expected to grow. Key focus areas will include future gas supply options, as well as enabling infrastructure critical to sustain and grow the gas market. Both companies will explore developing multiple low-cost gas import locations around the country. Preliminary global benchmark case studies indicate that countries experiencing growth in demand for gas have opted for increasing the number of import locations to serve regional markets via pipeline. A successful example is India, which currently has six liquefied natural gas (LNG) terminals in operation, with another four currently under development to become operational 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.