Renergen has signed a deal on the distribution of its LNG through Total South Africa Proprietary’s service stations.
Renergen is working on the Virginia gas project, in Free State. This has a primary focus on LNG, which will be used for domestic consumption. The plant should be operational around the third quarter of 2021.
“We are proud to have partnered with a global forward-thinking energy company. Total has a big focus on sustainability and a proven track record in the LNG space, which was clearly an advantage,” said Renergen CEO Stefano Marani.
“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.”
Total South Africa’s managing director Mariam Kane-Garcia said the move was a proud moment for the French 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.
“We look forward to working together with Renergen to continue making a difference in South Africa.”
The first route that will see Renergen’s LNG distributed will be on the N3, between Johannesburg and Durban. The company expects this to expand to other routes once its second phase of production starts up.
Trucks that use LNG produce lower greenhouse gas emissions when compared with diesel. LNG is also cheaper, Renergen’s CEO has said, offering savings of up to 25%.
In the longer term, the company expects most of its revenues to come from helium, rather than LNG.