The authorization was granted by the Transnet National Port Authority (TNPA), the company informed in a statement on Wednesday.

Aldworth Mbalati, DNG Energy CEO said, “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 decarbonize the shipping industry by offering LNG as a transition fuel that is safer for marine species.”

The license gives DNG Energy rights to have its terminal, the floating storage unit (FSU) in Algoa Bay, which is a first in Africa. This will enable the company to offer off-shore as well as on-shore logistics with ship-to-ship transfers for international trading ships as well as LNG “milk runs” within the country.

The impact of this project stretches from securing energy for various industries and households as well as creating jobs and developing skills in the country, the company said.

“The licence opens up a way for us to deliver LNG in South Africa as early as 2021. The next steps include completing our terminal infrastructure at Algoa Bay and finalizing delivery of our storage and bunkering equipment,” adds Mbalati.