/ MEDIA STATEMENT / This content is not written by Creamer Media, but is a supplied media statement.
According to the South African Energy Development Institute (SANEDI), energy demand declined by up to 30% across the globe due to the implemented lockdown restrictions. This is a result of the limitations imposed by the lockdown regulations.
We are well aware of many industries in South Africa that have not been operating at their maximum capacity and in some cases not operating at all during this period. Even with the oil price hovering over the $40 mark the sharp decline in the Rand has meant that many companies have not reaped the reward of lower energy costs.
CNG Holdings through its division, Virtual Gas Network, announces that since the price of Natural Gas is affected by neither the exchange rate nor the price of crude oil, the nett supply price to their customers has, in fact, come down. Through a transportation and storage network, many businesses will benefit from the lower stable pricing of CNG. As the LPG winter shortage starts to affect manufacturers the approximately 30% cost of fuel-saving and abundance of supply is looking more and more attractive.
CNG has been available to industry since 2008. Many major household brands are already benefiting from the short and long term savings offered by Virtual Gas Network through their mobile solution, literally bringing all the benefits of being connected the SASOL pipeline without the costs of connection.
In 2019 a leading South African Dog Food Manufacturer using 2 200GJ per month saved R 1 342 800 for the year compared to what they paid previously for LPG.
In 2019 a leading South African Rib Processor using 1 000GJ per month saved R 742 717 for the year compared to what they paid previously for Diesel. It should be noted that they also achieved an energy efficiency of 14%.
These are just two examples of companies making the virtual gas network work for them. Clients ranging from small regional manufacturers using less than 1 000GJ per month to large multi-nationals using more than 16 000GJ per month are taking delight in the energy efficiency and Rand savings they are adding to their bottom line using Compressed Natural Gas (CNG) as their energy source.
It is an accepted fact that the economic recovery is going to take time. Can industry afford to finance their production while waiting for the economy to recover? There are only two ways to grow a business, increase sales and reduce expenses. Natural Gas has helped industry reduce costs since the 1960s. Now is the time to join the growing number of companies, hospitals, mines and all manner of industry to Switch & Save.