The Central Energy Fund (CEF) and Sasol, an integrated energy and chemical company, have signed a Memorandum of Understanding (MoU) to accelerate natural gas development in South Africa.
The agreement establishes a cooperative approach to natural gas project development, exploration, and production, with a primary focus on lowering imports and ensuring long-term energy security.
To support gas-directed investment and growth in the country, Sasol and the CEF will build on existing relationships as well as their strong business connection. Both Sasol and the CEF are dedicated to enhancing the country’s energy supply and building a viable natural gas market in South Africa by working together to create cost-effective solutions for natural gas monetization and use.
The MoU aims to increase natural gas development across the country, resulting in a positive natural gas outlook for South Africa, which is reliant on natural gas imports from Mozambique and other neighbouring countries. The MoU is one of the first steps in the country’s journey to becoming a natural gas competitor.
Commenting, the Executive Vice President for Energy Business, Sasol, Priscillah Mabelane, said: “Sasol has had a long-standing relationship with the CEF through our well-established partnership in the Republic of Mozambique Pipeline Company pipeline and looks forward to commencing this next stage of growth in gas together.”
In the wake of the discovery of significant natural gas reserves in 2019, South Africa has refocused its efforts on building a strong natural gas sector in the face of rising energy demand and power shortages. The Brulpadda and Luiperd possibilities, each estimated to have 1 billion barrels of gas condensate, present new and lucrative options for improving energy supply and assuring a sustainable power generation solution for the country’s rising economy.
Natural gas is being positioned as the ideal resource to scale up job creation, promote socio-economic growth, and attract foreign direct investment in the future years, with exploration and production likely to increase, particularly in offshore basins.
