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AfrOil PROJECTS & COMPANIES AfrOil

DNG says the pilot project will last for six months (Photo:DNG Energy)

DNG, Masana unveil plans for pilot

LNG project targeting transport sector

SOUTH AFRICA DNG Energy of South Africa is expanding its commercial models aligned with our low-car-
effort to promote the use of LNG as a transport bon participation strategy.”
fuel through the launch of a pilot project with For his part, Aldworth Mbalati, the CEO
Masana Petroleum Solutions, one of its own of DNG, described the pilot project as a proof-
subsidiaries. of-concept initiative that could help establish a
In a statement, DNG said it intended to work cost-effective path toward reducing emissions in
with Masana, its petroleum and energy arm, to key sectors of the economy. “LNG is a cheaper
roll out the pilot programme in the fourth quar- alternative to petrol and diesel, is in abundant
ter of 2021. It explained that it would be supply- supply and will save the various industries in
ing LNG to at least one of Masana’s customers terms of service costs, as service intervals are
over a period of up to six months. longer,” he said. “We therefore see no reason
The statement did not reveal which Masana why LNG cannot become the fuel of choice
customer would receive the LNG. It did note, today, especially as natural gas vehicles, includ-
though, that DNG would be responsible for ing trucks and buses, are already in production,
supplying the fuel in the required volumes and and [LNG] is proven to be less harmful to the
for installing the cryogenic equipment needed environment.”
to store and dispense fuel to the customer’s Mbalati also pointed out that LNG’s advan-
vehicles. Additionally, the company will pro- tages were not confined to the transport sector.
vide Masana with training and support during “In addition to the transport diesel market, the
the course of the pilot project. availability of utility-scale LNG in South Africa
DNG said it hoped the pilot project would lay will afford the wider industrial and commercial
the groundwork for expanding the use of LNG customers in the manufacturing, power gen-
as a transport fuel in South Africa. This would eration, mining and agricultural segments an
have environmental benefits, as LNG is a clean- opportunity to reduce their cost of energy use
er-burning fuel than diesel, the main type of fuel and carbon tax,” he said. “We look forward to the
used in road transport, it noted. pilot and sharing the results with the market.”
Morena Sithole, the managing director of DNG went public with news of the pilot pro-
Masana, said the pilot project was in line with ject shortly after announcing that it had teamed
his company’s efforts to identify and meet its up with Imperial Logistics, another South Afri-
customers’ needs and priorities. “The world can company, to test the use of LNG as an alter-
is transitioning to a lower-carbon future, and native to diesel.
we aim to support our customers through this This initiative will be carried out over a
transition,” he commented. “This partnership period of six months, with DNG to provide LNG
offers Masana an opportunity to learn together along with the equipment necessary to store it
and identify key success factors to scale up and dispense it into Imperial’s trucks. ™

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