DNG Smart Gas is championing the use of Liquefied Natural Gas (LNG) for road and maritime transport, specifically for the public transport (minibus taxis and buses), logistics (trucks), and shipping sectors.

The supply of a cheaper and cleaner alternative to the traditional fuels of diesel and petrol in the South African market is the first step in DNG’s contribution to the nation’s sustainable development. The use of LNG as a smart gas will have a tremendous impact on the future of the country with its extensive environmental and economic benefits.

Public Transport

Buses, minibus taxis, and trains are the backbone of South Africa’s public transport system. These are essential modes of transport for lower-income groups to commute to work, consider job opportunities, and link people with services.

The cost of transport should not deter or inhibit social inclusion or economic participation by lower-income groups. Taking into account the percentage of personal income spent on commuting, public transport needs to be more affordable.

The minibus taxi industry is the dominant provider of South Africa’s public transport system, moving 68% of the country’s 15.4 million daily commuters.

Logistics business

Fuel generally accounts for 50% of the total operational cost for logistics companies. Savings generated from implementing this LNG smart fuel solution will have a direct impact on this expense and improve the bottom line through:

• Vehicle conversion
• Refuelling at service stations
• Supply, installation and servicing of cryogenic pump and tank equipment for refuelling on their premises

We offer fleet owners the opportunity to manage their fleets more effectively with technology to track vehicle activity and effect cashless transactions. Lower fuel expenditure can also save fleet owners at least 40% of their budget.

Fleet owners and drivers who convert their vehicles to run on LNG will be able to take advantage of the affordable prices of this fuel alternative. They will realise the economic benefits in a short period. The innovative and economically favourable business model developed by DNG Smart Gas will also mean no capital outlay based on certain conditions.

DNG Marine is a specialist shipping company mandated to collect and deliver LNG to various DNG Energy projects.

DNG Energy, through its business unit DNG Marine, will moor its 8,000 ton LNG barge at the Port of Coega in Algoa Bay in the Eastern Cape, South Africa. It is the largest vessel by weight ever to be built on the African continent. 

The strategically located facility on one of the world’s most travelled trading routes with 56,000 ships passing through each year will come on line in 2021, providing commercial vessels with access to LNG. Until now, limited infrastructure has been a barrier to adopting LNG as a smart fuel alternative to the shipping industry.

The introduction of IMO 2020 presents significant challenges as IMO requires 0.5% sulphur content in marine fuels for the shipping industry, notwithstanding other ambitious decarbonisation and broader sustainability targets towards 2050.

Therefore, it is increasingly evident that LNG as a transition fuel plays a vital role in this pathway. 

The development of the LNG bunkering infrastructure in Algoa Bay’s global maritime hub is a natural step in expanding Africa’s LNG value chain.

DNG Marine will source, own, and operate several FSUs, FSRUs and LNG carriers that will maintain a sufficient level of LNG to fulfill project requirements. Our vessels will be South African registered, and our crew will be locally recruited.

DNG Marine can import about 8.5m cubic meters of LNG annually into South Africa, which we anticipate by the end of 2022.

As we strive to achieve the highest training standards to meet international maritime requirements, DNG Marine’s support of local maritime training centres will aid skills development and job creation for the youth.