DNG – Championing the LNG Value Chain

Overview of DNG

DNG Energy, established in 2013 by South African entrepreneur Aldworth Mbalati, is a liquefied natural gas (LNG) infrastructure and supply company operating in South Africa, Mozambique, Ghana, and Nigeria. Our mission is to drive an energy revolution by providing LNG, investing in advanced LNG infrastructure to support the revival of Africa’s economy through stable, affordable, and sustainable power.

Services Offered

DNG holds an LNG bunkering license, enabling us to supply LNG to international ships in Algoa Bay, while we finalize permissions to serve the local South African market. Our operations encompass the entire LNG supply chain—from importing and distribution to the beneficiation of large LNG volumes. Our services include bunkering, providing LNG for marine, road, and rail transport, as well as for commercial, industrial, and residential needs, and supplying gas-to-power plants and manufacturing cryogenic and gas equipment.

Impact of LNG on South Africa’s Energy Mix

LNG serves as a cleaner and more affordable fuel option for transportation, industrial operations, and residential power needs. With a lower carbon footprint than other fossil fuels, LNG accelerates the transition toward a decarbonized energy industry.

The large volumes of LNG available through DNG’s operations at Coega will enhance South Africa’s energy security by providing a reliable supply for gas-fired power stations. Furthermore, LNG is crucial for stabilizing the electricity grid, which is expected to rely increasingly on renewables as outlined in the Integrated Resource Plan (IRP 2019). The development of new gas-fired power plants and the conversion of diesel turbines to LNG will also create job opportunities and skills development in the gas sector.

Major Milestones as CEO

One key milestone was DNG’s introduction of a small-scale LNG solution for natural gas users in Ghana in 2016, catering to power plants such as Trojan and Sunon Assogli. However, the most significant achievement to date has been obtaining the bunkering license for Coega, which is set to revolutionize energy provision and security both in South Africa and across the continent. This license positions DNG to serve international vessels passing through Algoa Bay, driving economic growth and development.

Challenges and Solutions

The challenges DNG faced were typical of an emerging industry. The regulatory landscape for LNG remains nascent, and securing the bunkering license took seven years of dedicated effort. Throughout this journey, we have developed valuable insights and frameworks that will assist future entrants into the industry. Our experience has also equipped us to engage effectively with various stakeholders to ensure positive outcomes.

Impact of COVID-19

DNG navigated the pandemic without loss of life among team members, though some project timelines were delayed. We are actively working to recover lost time, including finalizing the construction of our DNG loading container and transport barge, which we aim to complete in 2021.

Plans for 2021

In 2021, we plan to commence bunkering operations in Algoa Bay and subsequently expand our activities to the port of Maputo.

Message for Struggling Businesses

Difficult times are an inherent part of life’s journey. It’s vital to cultivate resilience within business systems through planning and creativity. Challenges can also reveal new opportunities when approached with a clear mind. Collaboration with like-minded partners can enhance our ability to meet needs. Serving others is key to achieving our best outcomes.

In facing unforeseen challenges, the spirit of Ubuntu is crucial. To thrive in the future, we must extend our focus beyond narrow business interests and establish frameworks that support society during tough times—such as larger businesses assisting smaller ones to ensure sustainability.