A long-awaited first shipment of LNG has arrived in South Africa as DNG Energy finally cracks the code for the country with volumes imported by container.
SABC News TV said the country's first container of LNG had been received from the Netherlands at the port of Ngqura in Gqeberha. The volumes will be stored at the port.
The TV network interviewed DNG group chief executive Aldworth Mbalati in front of a Mediterranean Shipping Co (MSC) container vessel expounding on the benefits of LNG.
DNG has been contacted about this shipment.
These initial LNG volumes are expected to be used for road transport. But DNG plans to use a floating storage unit positioned in Algoa Bay from 2022 to ship in larger import cargoes for power and bunker supply use.
In September a spokesperson for the company told TradeWinds that the small volumes for the initial shipments would be acquired on the spot market in Rotterdam to commission its facilities and be imported on ISO containers, which would arrive by sea.
Pilot
In September DNG announced a tie up with Masana Petroleum Solutions on a pilot for using LNG for road transport specifically for large freight trucks and commuter busses.
DNG will supply LNG for the pilot through ISO containers.
"The success of the pilot study will open up possibilities for a cleaner fuel to be available on a larger scale in South Africa to decarbonise the commercial and industrial industries," DNG said at the time.
The first shipment of LNG through the FSU is expected in the first quarter of 2022, the company said at the time. "Volumes for our FSU and long-term projects will then be acquired through contractual arrangements."
DNG has been linked to the NYK Line-controlled, 127,705-cbm LNG Flora (built 1993), in which Mitsui OSK Lines and Japanese utilities Osaka Gas and Toho Gas also have stakes, which industry watchers said will likely serve as the FSU for the project.
But the vessel has yet to leave Singapore and project deadlines have slipped.
South Africa has been trying to import LNG for over 15 years.
DNG was officially registered as the country’s first importer of LNG on 8 July.
