South Africa: DNG lands first LNG cargo

DNG Energy has received a cargo of LNG from the Netherlands - the first such delivery in South Africa. The cargo arrived at the port of Ngqura in Gqeberha, formerly known as Port Elizabeth.

The company announced plans to bring its first floating storage unit online in the first quarter of 2022.

DNG CEO Aldworth Mbalati described the arrival of the cargo as an "inflection point for the energy market in South Africa." It marks a shift from the use of coal and oil to "cleaner alternatives." Along with renewables like wind and solar, the new generation of gas technology brings low-cost power generation capabilities to the market on a large scale."

The company has signed agreements with transport companies interested in testing LNG as a fuel. The company has ordered an LNG barge from the South African shipyards in Durban. It will dock the barge in Coega, with DNG claiming it is the largest ship by weight ever built in Africa.

"We are looking at the LNG value chain holistically, from source to consumption, with ambitious infrastructure expansion plans for South Africa, Mozambique and Nigeria," said Mbalati.

"Over the next few years, LNG has the potential to generate significant growth and job creation, while helping South Africa meet its greenhouse gas emission reduction targets of 30-40%.

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The company signed an agreement in September with Masana Petroleum Solutions and Imperial Logistics on the potential use of LNG. Both trials will last six months.

DNG said the agreement with Masana would begin in the last quarter of 2021. DNG will provide LNG and equipment for delivery and distribution, he said.

Speaking at the time, Mbalati said that LNG is a cheaper alternative to gasoline and diesel. In addition, it is less harmful to the environment.

Mbalati said LNG could play a role in South Africa in power generation and trucking.

DNG is in the midst of a legal tug-of-war with Karpowership, which won a tender to supply emergency power to South Africa. DNG has objected to the win. The High Court will hold a hearing on the case in late November, early December .