Renergen today said it has signed an agreement with Total South Africa for the joint marketing and distribution of LNG through Total’s service stations.
The Emerging domestic natural gas and helium producer 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.
“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.”
Mariam Kane-Garcia, Managing Director of Total South Africa, said, “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 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.