DNG Energy moves forward with South Africa LNG bunkering plans

DNG Energy said it has received a final approval enabling the firm to start LNG bunkering operations in the Port of Coega, South Africa.

The licence awarded by the Transnet National Port Authority gives DNG rights to build and operate its terminal, the 160,000-cbm floating storage unit (FSU) in Algoa Bay.

The firm also plans to deploy a LNG bunkering barge to serve the project to be located in South Africa’s largest bunkering port, with more than 56,000 vessels transiting every year.

This would be the first such project for South Africa, according to DNG that is looking to boost the use of LNG for road and maritime transport in the country.

The firm aims to offer offshore as well as onshore logistics with ship-to-ship transfers. This includes international trading ships but also LNG “milk runs” within South Africa, the firm said.

South African entrepreneur Aldworth Mbalati and DNG’s CEO said the new approval is a positive outcome for the firm and South Africa.

He said the 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,” he said.

Mbalati said the licence opens up a way for the firm 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,” Mbalati said.

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