Eskom and Sasol have signed a Memorandum of Understanding (MoU) to explore future liquefied natural gas (LNG) needs for South Africa, aiming to establish a viable LNG import market and supporting infrastructure.

South African petrochemicals company Sasol and state power utility Eskom said on Friday they had agreed to jointly explore ways the country could use liquefied natural gas (LNG). As the country's two biggest users of coal,

Qatar is a leading candidate to supply liquefied natural gas to South Africa as power utility Eskom Holdings SOC Ltd. and Sasol Ltd. collaborate to get the fuel from new sources before its main supply drops off in 2027.

The primary goal of the collaboration is to determine the volumes of LNG needed to establish a sustainable import market in South Africa.

Eskom and Sasol have signed a memorandum of understanding (MoU) to jointly explore the potential to introduce liquified natural gas (LNG) to replace natural gas imports from southern Mozambique, which are currently set to decline sharply from 2027.

Eskom and Sasol have entered into a new agreement which sees the country's two industrial giants work together to secure gas, ahead of a supply crisis and reduce emissions to meet climate commitments.

Collaboration aims to develop sustainable LNG import market amid growing energy demands.

Eskom and Sasol have agreed to work together to find a way to deal with a looming energy crisis in the country – where South Africa may be 2 years away from running out of gas.