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

Commenting on the authorisation, DNG Energy Group Chief Executive Officer, Aldworth Mbalati, said that South Africa is poised to become an LNG bunkering hub in the Southern Hemisphere.

The licence enables the company to respond to environmental, legislative and business needs for the South African and the international LNG fuel markets.

The licence is a first in Africa, and will enable DNG Energy, using its floating storage unit (FSU) in Algoa Bay, to offer offshore as well as on-shore logistics with ship-to-ship transfers, as well as LNG ‘milk runs’ within the country.

Mr . Mbalati added that the licence opens up a way to deliver LNG in South Africa as early as 2021.

The company will now seek to finalize its terminal infrastructure at Algoa Bay and complete the delivery of its storage and bunkering equipment.