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DNG gets its first LNG consignment

DNG also says it plans to commission its first floating storage unit delivery in the first quarter of next year. File Image: IOL

DNG also says it plans to commission its first floating storage unit delivery in the first quarter of next year. File Image: IOL

Published Nov 19, 2021


DNG Energy, a black-owned firm, said this week it had received its first consignment of liquefied natural gas (LNG) from Rotterdam, Netherlands, an important milestone.

The company, which is driving a multibillion-dollar investment into creating a pan-African LNG supply network, said the development was a precursor to the commissioning of DNG’s first floating storage unit delivery in the first quarter of next year, setting the stage for a new era of growth, competition and sustainability in the energy market.

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DNG Energy Group chief executive Aldworth Mbalati said the arrival of the LNG consignment was an inflection point for South Africa’s energy market, marking a key moment in the shift from coal-fired and oil-fired power-generation to cleaner alternatives.

“Along with renewables like wind and solar, the new generation of gas technology brings low-cost power production capabilities to the market on a massive scale,” Mbalati said.

“In the context of South Africa’s just energy transition, LNG represents an excellent alternative that will help cut greenhouse gas 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 growth population as the world transitions towards a zero-carbon energy future.”

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This affordable alternative energy was said to be the culmination of a $5 billion (R76bn), seven-year investment in infrastructure. The development would catalyse the growth of a new gas economy in South Africa, in turn, supporting the shift to more sustainable energy sources, facilitating industrialisation, creating new jobs, and offering commercial customers more choice.

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.

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“Over the next few years, LNG has the potential to drive significant growth and job creation, while helping South Africa meet its targets in reducing greenhouse gas emissions by as much as 30 percent to 40 percent.”

DNG Energy was founded by Mbalati, a South African entrepreneur in 2013 with the vision of achieving energy security and stability. As a 100 percent black-owned African entity, DNG Energy created a pan-African LNG supply network.

The initial development and infrastructure expansion programmes are being planned for South Africa, Mozambique and Nigeria.

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As a first step in contributing to sustainable development, DNG Energy said it was championing the use of LNG for road and maritime transport, specifically for trucks, buses and ships.

DNG Energy had commissioned South African Shipyards in Durban to build an 8 000 ton LNG Barge that would be moored at Coega, which it said would be the largest vessel by weight ever to be built in Africa and was expected into service this year.

According to the PwC, the global energy market is in an exciting phase of transition and disruption. Decarbonisation, driven by the environmental sustainability agenda, was shifting the energy mix at an accelerating pace. It said this seemed likely to position gas ahead of coal by 2030 to become the world’s number two fuel.


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