Pan-African liquefied natural gas (LNG) supply network DNG Energy has received a shipment of LNG at its plant in Germiston, enabling the company to accelerate its pilot projects with its partners in the next few weeks.
DNG Energy’s pilot projects aim to test the feasibility of using LNG as an alternative to diesel, as a proof-of-concept for a cleaner and more affordable option for transport, industrial power generation and mining.
The LNG shipment follows the recent arrival of South Africa’s first LNG shipment from Rotterdam, in the Netherlands.
DNG Energy’s LNG shipment is the culmination of seven years of planning, permitting and licensing efforts – the start of an investment programme of about R5-billion over the next several years to ensure bulk affordable and reliable LNG supply in South Africa.
Speaking at a ribbon-cutting ceremony at the plant, DNG Energy group CEO Aldworth Mbalati said several years, large investments and preparations of infrastructure have culminated in the LNG shipment and a “new dawn” for South Africa’s energy market.
“We are especially proud that it is a private, 100% black African-owned business that is enabling a future where energy is cleaner and more cost-effective than ever.”
He added that DNG Energy was focusing on transforming South Africa’s energy landscape through the advancement of LNG, which has a key role to play in increasing industrial output and power supply, while reducing greenhouse-gas emissions.
“By driving competition in the energy market, our LNG offering has the potential to boost local manufacturing and drive economic growth through the transfer of skills and creation of employment,” said Mbalati.
In addition to being an 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.