DNG Energy secures LNG bunker license

Thursday, 19 November 2020
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South African fuel firm DNG Energy has received approval to commence LNG bunkering in the Port of Coega, South Africa from 2021.

The authorization marks the first such license issued in Africa and will enable vessels to refuel at the port in the Eastern Cape from as early as next year.

“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, CEO of DNG Energy Group, said.

LNG demand growth

The group expects South African demand for LNG to rise rapidly over the coming decade, with bunkering volumes set to reach at least 2.4 million tonnes of LNG a year by 2024, as more and more operators switch to the fuel to meet emissions targets.

“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,” Mbalati commented.

Delivery of storage and bunkering equipment is expected to take place imminently with DNG planning to deploy its floating storage unit (FSU) in the near term.

Terminal infrastructure

Following license authorization the company is now also seeking to finalize plans to develop a more permanent terminal, supplementing floating infrastructure at the new Coega deep water port facility.

“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.

Based in Sandton, South Africa, the group also plans to acquire two LNG bunkering vessels, to support refuelling of larger LNG-fuelled vessels further offshore. 

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