South Africa’s Renergen and Total sign joint LNG marketing agreement
Emerging domestic natural gas and helium producer Renergen is pleased to announce that Total South Africa Proprietary Limited and the Company signed an agreement for the joint marketing and distribution of liquefied natural gas through Total’s service stations.
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. 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.
“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. We look forward to working together with Renergen to continue making a difference in South Africa,” said Mariam Kane-Garcia, MD of Total South Africa.
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.