LNG filling stations to be set up on SA's highways

A series of filling stations for vehicles running on liquefied natural gas (LNG) will be set up in South Africa in about three years.

A deal between helium and gas producer Renergen and Cape Town-based logistics firm Timelink will see the former supply the latter’s line-haul fleet with LNG once phase two of the Virginia gas project in the Free State comes online in 2026.

According to Moneyweb, the partnership will allow Timelink to move away from using diesel, which is more expensive.

Phase one of the Virginia gas plant is already operational, producing 50 tons of LNG daily. Phase 2 is expected to increase production to 680 tons or 940 000 diesel litre equivalent a day

Renergen CEO Stefano Marani says the LNG refuelling stations will be set up near major national highways, such as the N1, N5, N3, N4, N11 and further strategic points along the N2.

‘You want to use LNG if you are moving goods from Cape Town to Joburg; that’s when your cost savings is remarkably significant on running LNG as opposed to diesel,” he says.