- Sasol's partnership with the Central Energy Fund (CEF) would allow it to explore low-cost gas import locations.
- The state-owned CEF is tasked with ensuring the country's energy supply.
- The companies have dedicated resources aimed at expanding the Southern African natural gas market.
Sasol and the Central Energy Fund (CEF) have signed a memorandum of understanding which will allow them to collaborate on accelerating the development of gas resources in the country, it was announced on Tuesday.
The state-owned CEF is tasked with ensuring the energy supply of the country. Sasol said the partnership would see them working together to explore developing multiple low-cost gas import locations around the country.
"Sasol has had a long standing relationship with CEF through our well-established partnership in the Republic of Mozambique Pipeline Company (ROMPCO) pipeline and looks forward to commencing this next stage of growth in gas together," said Sasol executive vice president for energy business, Priscillah Mabelane.
Sasol recently sold its 30% stake in a ROMPCO natural gas pipeline, the South African Gas Development Company (iGas), a subsidiary of CEF and the Companhia Mocambiçana de Gasoduto.
The 865km high-pressure pipeline conveys gas from Pande and Temane to Secunda.
"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," said Ishmael Poolo, chief executive of CEF.
South Africa mainly relies on imports for domestic gas use. The companies say they have dedicated resources aimed at exploring options to develop and expand the Southern African natural gas market.
In another separate development, Sasol announced that its researchers, working with the Catalysis Institute at the University of Cape Town had made progress in the use of commercial iron catalysts to convert hydrogen and carbon dioxide into green jet fuel and chemicals.
"This development is a significant step towards the implementation of CO2 hydrogenation technology in South Africa," according to Sasol.
It is said that the UCT has also been working on CO2 conversion technology and has built up extensive experience in CO2 hydrogenation.