South African LNG firm DNG Energy is teaming up with compatriot Imperial Logistics to test the feasibility of using liquefied natural gas as an alternative to diesel in the country’s transport sector.
The pilot project would “proactively respond to the drive towards a net-zero
carbon transport sector in South Africa,” DNG said in a statement.
DNG said the pilot would run for six months. As part of the pilot project, the firm will design, manufacture and supply the associated LNG dispensing and storage equipment, such as cryogenic tanks.
“The results of the pilot will go a long way towards ensuring that LNG is adopted as a credible transition fuel that will take South Africa towards a cleaner future,” it said.
DNG did not provide any additional information on the project.
“This partnership comes at a time when the world is seeking cheaper alternatives to traditional sources of fuel,” DNG’s CEO Aldworth Mbalati, said.
“The LNG industry is booming as industrial and commercial customers in the manufacturing, power generation, mining and agricultural segments turn to LNG to reduce their cost of energy use and carbon tax,” he said.
Besides this project, DNG said in October last year it had received final approval enabling the firm to start LNG bunkering operations in the Port of Coega, South Africa.
This would be the first such project for South Africa, according to DNG that is looking to boost the use of LNG for both road and maritime transport in the country.