Delta Natural Gas (DNG) Energy has received final authorisation from the Transnet National Ports Authority (TNPA) to begin liquefied natural gas (LNG) bunkering operations in the Port of Coega, in the Eastern Cape.
DNG Energy group CEO Aldworth Mbalati says this is a positive outcome for both the company and South Africa, as the country is poised to become a premium LNG bunkering hub in the southern hemisphere.
The licence enables DNG Energy to respond to environmental, legislative and business needs for the South African and the international LNG fuel markets.
The licence gives DNG Energy rights to have its terminal, a floating storage unit (FSU), in Algoa Bay, which is a first in Africa, and which will enable the company to offer offshore, as well as onshore, logistics with ship-to-ship transfers for international trading ships and LNG “milk runs” within the country.
The impact of this project stretches from securing energy for various industries and households, to creating jobs and developing skills in the country.
“We are positive about the future of South Africa and supplying the cheapest possible gas that we can find to power the economy is our contribution towards achieving socioeconomic aspirations of the country in a responsible manner,” Mbalati comments.
The licence opens the way for the company to deliver LNG in South Africa as early as 2021.
The next steps include completing terminal infrastructure at Algoa Bay and finalising delivery of the storage and bunkering equipment.