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African Renaissance Conference 2017

                                                  

     

    NGV OPENS UP SA’S NATURAL GAS RESERVES

    CNG Holdings subsidiary NGV Gas launched a compressed natural gas (CNG) public filling station at
    Langlaagte, Johannesburg on Thursday 13th March 2014 bringing the power of clean energy and a reduction in costs to South Africa’s industrial and public transport sectors.

     

    CNG Holdings CEO Stephen Rothman reports that the company is in the process of converting 1 000 taxis to run on CNG which will allow them to refuel at the new CNG public filling station with ease. “This

    will have an incredibly positive effect on the fuel and operating costs of South Africa’s most accessible form of public transport. We are also converting existing filling stations to offer Compressed
    Natural Gas as an alternative fuel source,” he adds.
    Cash injection
    The launch of the latest phase of CNG Holding’s roll out of natural gas into South Africa was made possible by investment and funding in the company by the Industrial Development Corporation’s
    (IDC) which saw it acquiring a 26% stake in the company in April 2013 and a further 12.64% in March 2014 giving it a total of 38.64%. The total funding will amount to R120-million by the second quarter
    of 2014 and will complete Phase 1 of the CNG Groups roll out strategy. This followed a three year feasibility study by CNG Holdings into the viability of the project including a pilot phase that recorded industrial customers experiencing a 10% - 25% saving on operating fuel/energy costs (depending
    on fuel substituted) and vehicle tests that showed a 25% - 35% saving in running fuel costs.
    The IDC investment allowed CNG Holdings to proceed with a R100-million expansion programme to make CNG an affordable energy alternative for industrial users and fleet owners. As a result, several
    blue chip multinationals have already begun making use of CNG. 

    The Bigger Picture
    Rothman explains that this development comes against the backdrop of gas now being widely recognised as the fastest growing energy source in the world with natural gas’s share of global energy
    expected to rise from 20% to 25% between 2005 and 2030. Demand for natural gas is also expected to rise by 60% between 2005 and 2030.
    “Despite these buoyant figures, global gas reserves remain largely under exploited with annual production sitting at 110 Tcfs despite estimated worldwide reserves of 6 600 Tcf. The problem stems from issues such as difficulty with transportation resulting in so called ‘stranded reserves’
    – an issue that our operations aim to alleviate,” says Rothman.
    Nationwide roll out
    The new public filling station is a significant next step in CNG’s nationwide rollout plans and is adjacent to an already up and running CNG ‘Mother Station’, located at Sasol’s main supply point to
    the Egoli Gas network in Langlaagte, Johannesburg. The Mother Station concept forms a core
    part of CNG Holding’s other company Virtual Gas Network which supplies CNG via road transport or what it terms a Virtual Pipeline®. “This virtual network stemmed from a need for specialised
    vehicles to facilitate the distribution of natural gas in South Africa. NGV Gas and Virtual.
    Gas Network were therefore established usi platforms within the transport and industrial market,” explains Rothman.
    The Virtual Pipeline system is specifically designed to provide solutions to:

    • Customers who are too far to draw from an existing pipeline;  
    • Large industrial/ commercial customers within a radius of 300km from a Compression Station (Mother Station)
    •  Smaller customers which will form part of a larger distribution network, such as (industrial parks, housing developments, mixed use developments); 
    This is underpinned by Virtual Gas Network, a subsidiary of CNG Holdings, which is able to transport CNG in special tube trailers by road to customers who are not on the existing gas pipeline. This innovative modular road transport system safely and economically delivers CNG to customers in the industrial and commercial sectors, customers wishing to set up internal gas distribution networks,
    power generation systems (such as cogeneration and tri-generation projects) and as per this latest launch, CNG public and private refuelling stations. CNG Holdings is a BEE certified company
    that owns equity in three operating companies: Virtual Gas Network, NGV Gas and CNG Technologies. For further information go to: www.cngholdings.co.za