100% black-owned energy infrastructure company, DNG Energy, announced today that it is commencing the delivery of liquefied natural gas (LNG) to commercial customers in the industrial, transport, marine and power sectors. This new and affordable energy alternative is the culmination of 7 years of planning, permitting and licensing efforts, which heralds the commencement of an investment program of some $5bn over the next several years to ensure bulk affordable and reliable LNG supply comes into SA.
This new development catalyses the growth of a new gas economy in South Africa, in turn, supporting the shift to more sustainable energy sources, facilitating industrialisation, creating new jobs, and offering commercial customers more sustainable energy options. By offering cleaner and smarter fuel and energy, LNG will play a key role in the much-needed transition from fossil fuels.
Speaking at the launch announcement, Aldworth Mbalati, founder and CEO, DNG Energy said: “The launch of DNG Smart Gas, our commercial LNG operations, brings us significantly closer to our vision of achieving energy security and stability in South Africa. This has been a long and complex journey with numerous barriers to surmount – from securing financing to obtaining regulatory approvals.
“Our success shows that we have the capabilities in Africa to energise a brighter future. Natural gas is cheaper than current conventional energy sources, such as diesel and LPG, which promises unquestionably significant economic benefits. We are excited to contribute to a new economic future by providing a responsible and responsive energy solution with lower greenhouse gas emissions than other fossil fuels.”
Last year DNG received final authorisation from the Transnet National Ports Authority to begin the bunkering operations in the Port of Coega, in the Eastern Cape. The company has deployed a 125,000 cbm-capacity floating storage unit (FSU) to support LNG bunkering operations. In addition, the company has completed terminal infrastructure at Algoa Bay, where its hub is situated.
This advanced infrastructure will be used to offer ship-to-ship transfers for international trading ships as well as onshore LNG transfers via road and pipelines. DNG has developed a network of gas supply, enabling reliable LNG supply to penetrate the energy market nationwide. DNG has already conducted LNG proofs of concept with partners in the private and public transport industries, including Imperial, Masana BP and Rea Vaya. The infrastructure will also serve mining and industrial customers and is a critical, novel enabler of independent power producers.
Mbalati said: “We see the LNG value chain in a holistic way, from source to consumption, with robust expansion infrastructure plans for South Africa, Mozambique, and Nigeria. Over the next few years, LNG has the potential to drive significant growth and job creation, while helping South Africa meet its targets in reducing greenhouse gas emissions by as much as 30% to 40%.