Gas-to-power solutions provider DNG Energy has received South Africa’s first ever consignment of liquefied natural gas (LNG) from Rotterdam, in the Netherlands, in a historic moment for South Africa‘s energy market.
The development is a precursor to the commissioning of DNG’s first floating storage unit delivery in the first quarter of 2022, setting the stage for a new era of growth, competition and sustainability in the energy market.
This affordable alternative energy is the culmination of a $5-billion, seven-year investment in infrastructure, and will catalyse the growth of a new gas economy in South Africa. It will also support the shift to more sustainable energy sources, facilitate industrialisation, create new jobs and offer commercial customers more choice.
DNG Energy Group CEO Aldworth Mbalati on November 17 said the arrival of the LNG consignment was an inflection point for South Africa’s energy market, marking a key moment in our shift from coal-fired and oil-fired power-generation to cleaner alternatives.
Along with renewables like wind and solar, Mbalati noted the new generation of gas technology brings low-cost power production capabilities to the market on a massive scale.
“In the context of South Africa’s just energy transition, LNG represents an excellent alternative that will help cut greenhouse-gas (GHG) emissions, reduce air pollution and help combat global warming. It will play a key role in helping the country meet its carbon emission goals and provide power to a growing population as the world transitions towards a zero-carbon energy future.”
In addition to being an abundant energy resource for generating electricity and providing fuel for industrial processes and heating, LNG can be used as a raw material to produce chemicals, fertiliser and hydrogen.
It can also be used in several residential, commercial and transport applications.
“We look at the LNG value chain in a holistic way, from source to consumption, with ambitious expansion infrastructure plans for South Africa, Mozambique and Nigeria,” said Mbalati.
He added that, over the next few years, “LNG has the potential to drive significant growth and job creation, while helping South Africa meet its targets of reducing GHG emissions by as much as 30% to 40%”.