LNG for Africa!

DNG Energy plans to create a pan-African liquefied natural gas (LNG) supply network that will deliver the gas across the continent.

DNG Energy is an integrated energy resources and investment company founded by South African entrepreneur Aldworth Mbalati in 2013. Now the company’s group chief executive officer, Mbalati says that the company aims to invest more than US$2 billion in the next five years to create a strong and reliable LNG importation, handling and storage and distribution infrastructure.

“This is DNG Energy’s deliberate move to help decarbonise economies in the transportation and logistics, industrial and commercial, gas-to-power and household sectors while also modernising and making transactions affordable and LNG available on demand,” he tells FOCUS.

Some facts about LNG

According to Mbalati, LNG is odourless, colourless, non-corrosive and non-toxic. It is not flammable nor explosive as a liquid.

In addition, it can be efficiently transported in double-hulled ships specifically designed to handle its low temperature. “These carriers are insulated to limit the amount of LNG that boils off or evaporates. The boil-off gas is sometimes used to supplement fuel for the carriers,” he reveals.

LNG can be turned back into natural gas via a process called regasification. “Once regasified, it can be used in the same traditional ways as natural gas for heating and cooking. It can also be used for on-site power generation,” explains Mbalati.

LNG also allows for convenient storage of natural gas during off-peak times. This is called “peak-shaving” and it refers to the storage of surplus natural gas in LNG form during periods of lower energy consumption. “Once energy demands rise, it can be regasified and used to help meet the higher demand. This helps prevent energy shortages.”

There are 91 LNG receiving terminals worldwide. South Africa and Mozambique will soon be joining the list of countries with their own receiving terminals.

Many advantages

LNG offers numerous benefits, according to Mbalati. “Firstly, it offers reduced fuel costs. This is because natural gas is cheaper than conventional fuel and it also offers an increased range due to the extra tank capacity. Maintenance costs are reduced thanks to the extended maintenance intervals. The supply is stable; DNG’s bunkering capabilities afford the company multiple supply ports; and the company’s virtual network of supply will ensure delivery of LNG with minimal disturbance. Plus, of course, using LNG translates into a reduced carbon footprint,” he points out.

The company’s aim is to achieve energy security for the Southern African Development Community (SADC) countries by offering sustainable solutions to overcome current capacity shortages at affordable prices on the back of LNG, with a focus on renewables.

“DNG Energy’s innovative energy solutions place the company at the forefront of the energy transition that uses LNG to transition from carbon-heavy fossil fuels to zero-emitting technologies in a just manner that achieves prosperity for the majority of our SADC citizens,” notes Mbalati.

Plans include investment in biofuels, energy storage and facilitating the growth of hydrogen development with its large renewables programme and cryogenic solutions. “As the holder of LNG import licences for the ports of Maputo and Coega and the first-ever bunkering licence for Africa at Coega, DNG Energy is well-placed to disrupt and dominate the energy market in the next three to five years.”