By Sully Manope, in Cape Town
TOTAL South Africa has signed an agreement with Renergen for marketing and distribution of Liquefied Natural Gas produced by Renergen.
Johannesburg Stock Exchange (JSE) listed Renergen is in the construction phase of South Africa’s first commercial LNG plant, and is anticipating a turn-on date of the plant around the third quarter 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”, Renergen says.
“This agreement is intended to provide ideal filling locations for our customers along strategic routes across the country, and the union will create a powerful first mover advantage in this exciting space in South Africa,” said Stefano Marani, CEO of Renergen. 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.
“The LNG displaces diesel usage, reducing operating costs and helping customers meet their sustainability targets due to the significantly lower greenhouse gas emissions from natural gas over diesel”.