DNG ENERGY PROFILE FOR THE SUSTAINABILITY HANDBOOK

DNG Energy is an integrated energy resources and investment company that was founded by South African entrepreneur Aldworth Mbalati in 2013. The company’s vision is achieving energy security for the Southern African Development Community (SADC) countries by offering sustainable solutions to solve current capacity shortages at affordable prices on the back of liquefied natural gas (LNG) with a future integrated with renewable energy. DNG Energy plans to create a pan African LNG supply network that will deliver utility-scale LNG to support reliable power generation and various industries sustainably.

DNG Energy’s innovative energy solutions place the company at the forefront of the energy transition that uses LNG to transition from carbon-heavy fossil fuels to net zero carbon-emitting technologies in a just manner that achieves prosperity for the majority of our countries’ citizens. The company aims to invest over USD2bn in the next five years to create a strong and reliable LNG importation, handling and storage and distribution infrastructure. This is DNG Energy’s business rationale to help decarbonise economies in the transportation and logistics, industrial and commercial, and gas-to-power sectors while also modernising the gas market and making gas affordable and available on demand. A stable and secure supply of energy will also support a move to electric vehicles.

It is worth noting that LNG addresses rising sustainability concerns in the energy industry because it is an available and ready option to decarbonise the economy as we move towards net zero-emitting technologies, and requires little conversion to use, unlike oil-based products. DNG Energy is therefore well-positioned to plug the gap and lead the country into a new energy future with LNG solutions. However, as a responsible corporate citizen, DNG Energy is mindful of its environmental responsibility hence the strategy to incorporate renewable energy solutions in its energy investment mix. This will entail:

  • investment in wind and solar PV projects under the South African government’s Renewable Energy Independent Power Producer Procurement(REIPPP) programme;
  • initiating appropriate bio-fuel projects, as synergistic, with bio jet fuel, large-scale agriculture and food security as particular focus;
  • supporting its gas and renewables projectsby an investment in energy storage in the future; and
  • facilitating the growth of H2 with a large renewables programme and efficient distribution with its cryogenic logistic solutions created on the back of LNG

As holder of LNG import licenses for the ports of Maputo and Coega and the first ever LNG bunkering license for Africa at Coega, DNG Energy is well-placed to disrupt and dominate the energy market in the next three to five years.  

Facts about LNG
1. LNG is the cleanest burning fossil fuel. It produces less emissions and pollutants than either coal or oil.

2. LNG is a price-competitive source of energy that can drive economic growth and improve the lives of all citizens.

3. The use of LNG will help South Africa meet its targets in reducing greenhouse gas emissions by as much as 30% to 40%. It is particularly attractive as a transport fuel as it burns cleaner than petrol and diesel.

4. LNG is odourless, colourless, non-corrosive, and non-toxic. It is not flammable or explosive as a liquid.

5. LNG is very efficient to transport. It is transported in double-hulled ships specifically designed to handle the low temperature of the liquefied natural gas. These carriers are insulated to limit the amount of LNG that boils off or evaporates. The boil-off gas is sometimes used to supplement fuel for the carriers.

6. LNG can be turned back into natural gas in a process called re-gasification. Once re-gasified, it can be used in the same traditional ways as natural gas for heating and cooking. It can also be used for on-site power generation.

7. LNG also allows for convenient storage of natural gas during off-peak times. This is called “peak-shaving” and it refers to the storage of surplus natural gas in LNG form during periods of lower energy consumption. Once energy demands rise, then it can be regasified and used to help meet the higher demand. This helps prevent energy shortages.

8.There are 91 LNG receiving terminals worldwide. South Africa and Mozambique will soon be joining the list of countries with their own receiving terminals.