Emerging domestic natural gas and helium producer Renergen and Total South Africa have signed an agreement for the joint marketing and distribution of liquefied natural gas (LNG) through Total’s service stations.
The first route targeted under the agreement will be the N3 between Johannesburg and Durban, followed by the corridors leading to the other major cities once Renergen’s Phase 2 project comes into production.
Renergen is in the construction phase of South Africa’s first commercial LNG plant, and is anticipating a turn-on date for the plant around the third quarter of 2021.
The customer base for the LNG will predominantly be logistics companies operating trucks along the main routes across the country, with a significant portion of the initial production already allocated to customers.
According to the company, LNG displaces diesel use and reduces operating costs, while helping customers meet sustainability targets owing to the significantly lower greenhouse-gas emissions from natural gas over diesel.
Commenting on the milestone achievement, Renergen CEO Stefano Marani says the agreement is intended to provide ideal filling locations for customers along strategic routes across the country, adding that “the union will create a powerful first mover advantage in this exciting space in South Africa”.
“It is a proud moment for Total South Africa as it is yet another first for our company. Total is committed to better energy and with this partnership we are taking another step towards providing affordable, reliable and clean energy in line with our Climate Ambition to achieving carbon neutrality by 2050 together with society,” Total South Africa MD Mariam Kane-Garcia enthuses.