South African LNG company DNG Energy has received final authorisation from Transnet National Port Authority (TNPA) to begin LNG bunkering operations in the Port of Coega, in the Eastern Cape, South Africa.

Commenting, DNG Energy Group Chief Executive Officer, Aldworth Mbalati, called the LNG bunkering licence ‘a positive outcome’ for the company as well as South Africa.

‘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,’ said Mbalati. ‘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.’

The licence, a first in Africa, will allow DNG Energy, via its floating storage unit (FSU) in Algoa Bay, 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.

‘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,’ said Mbalati.

‘The licence opens up a way for us to deliver LNG in South Africa as early as 2021.

Following the award of the LNG bunkering licence, Mbalati says the company will seek to complete its terminal infrastructure at Algoa Bay and finalise delivery of its 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,’ Mbalati said.