June 18, 2020. Renergen and Total South Africa Proprietary Ltd have signed an agreement for the joint marketing and distribution of liquefied natural gas (LNG) through Total’s service stations.
Renergen is in the construction phase of South Africa’s first commercial LNG plant and is anticipating its turn-on date to fall in 3Q21. The customer base for the LNG will predominantly be logistics companies operating trucks along the main routes across the country. A significant portion of the initial production has already been allocated to customers. The LNG supplied to this sector will be used to displace 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. 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,” said Renergen CEO Stefano Marani.
“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 commences production.