JOHANNESBURG - Eskom is looking for local partners to generate electricity from gas.
Speaking to the South African Oil & Gas Alliance this weekend, CEO Andre De Ruyter, says gas is a viable option for South Africa, but local partners are needed to avoid the volatile market currently in Europe.
He said, "we want people who can supply gas reliably at a certain pressure over the fence at a price that is relatively stable. We have seen the volatility of gas prices in Western Europe as a result of the Russian invasion of Ukraine and we need to ensure that the South Africa electricity consumer is not exposed to that volatility."
"So hence my choice for domestic gas. We're also looking for partners in electricity generation. So we are looking for people that are prepared to become equity partners with Eskom in electricity generation based on gas and those with the necessary where-with-all, the necessary capital, the necessary expertise, we don't merely want passive investors, we want people who can add value and absolutely we would love to talk to them."
"I think the last partnership is in market aggregation. The price of gas comes down when the markets size increases and the bigger the size of the market the more Eskom will benefit and the more the South African electricity consumer will benefit."
"So if we can play a role in participating in market aggregation we would welcome that opportunity. We have a dedicated gas team. We are looking at a number of projects in various stages of development and as soon as we can source the gas we are ready and willing to proceed."