DNG Energy receives a licence for Liquefied Natural Gas (LNG) bunkering in Coega

The licence gives DNG Energy rights to have its terminal, the floating storage unit (FSU), in Algoa Bay, which is a first in Africa.

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A vessel similar to the vessels DNG Energy will be using at Coega. (Supplied: DNG Energy)

DNG Energy has received final authorisation from the Transnet National Port Authority (TNPA) to begin Liquefied Natural Gas (LNG) bunkering operations in the Port of Coega (Ngqura), in the Eastern Cape, South Africa.

Aldworth Mbalati, the Group Chief Executive Officer of DNG Energy says, “This is a positive outcome for DNG Energy and South Africa. Our country is poised to become a premium LNG bunkering hub in the Southern Hemisphere. The licence enables us to respond to environmental, legislative and business needs for the South African and the international LNG fuel markets. We are happy to be part of the solution in the quest to decarbonise the shipping industry by offering LNG as a transition fuel that is safer for marine species.”

Aldworth Mbalati, Group Chief Executive Officer of DNG Energy

The licence gives DNG Energy rights to have its terminal, the floating storage unit (FSU) in Algoa Bay, which is a first in Africa. This will enable the company to offer off-shore as well as on-shore logistics with ship-to-ship transfers for international trading ships as well as LNG “milk runs” within the country.

The impact of this project stretches from securing energy for various industries and households as well as 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 socio-economic aspirations of the country in a responsible manner. The licence opens up a way for us to deliver LNG in South Africa as early as 2021.

“The next steps include completing our terminal infrastructure at Algoa Bay and finalising delivery of our storage and bunkering equipment. We are poised to be the gas solutions provider for local and international markets by adding value in the gas value chain,” adds Mbalati.