South Africa’s DNG Energy in another LNG for transport deal

South African LNG firm DNG Energy said it has signed another deal aimed at introducing liquefied natural gas as an alternative to diesel in the country’s transport sector.

This time, DNG’s petroleum division and compatriot Masana Petroleum Solutions are joining forces to test the feasibility of making LNG available to South Africa’s transport industry.

“The success of the pilot study will open up possibilities for a cleaner fuel to be available on a larger scale in South Africa to decarbonize the commercial and industrial industries,” DNG said in a statement.

Also, the pilot study would begin in the last quarter of this year with at least one of Masana Petroleum’s customers and run for up to six months.

DNG said it would be responsible for supplying the required volumes of LNG, install
the necessary cryogenic equipment for delivery and dispensing of LNG onto the participating
vehicles but also provide training and support during the course of the pilot.

The firm has earlier this month announced a similar deal with Imperial Logistics. As part of this deal, the duo would also work on a pilot project for transport.

DNG’s CEO Aldworth Mbalati said, “LNG is a cheaper alternative to petrol and diesel, is in abundant supply, and will save the various industries in terms of service costs as service intervals are longer.”

“In addition to the transport diesel market, the availability of utility-scale LNG in South Africa will afford the wider industrial and commercial customers in the manufacturing, power generation, mining and agricultural segments an opportunity to reduce their cost of energy use and carbon tax,” he said.

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