Pioneering the use of Compressed Natural Gas (CN G) Technology for Industrial Applications

SLG through its wholly-owned subsidiary SLCNG commenced supplying Compressed Natural Gas (CNG) to a major JSE-listed industrial customer in December 2015.  The conversion to CNG of a major industrial customer was a milestone not only for SLG but for the South African natural gas industry because it was the first time CNG was used as an energy source by a major industrial customer in this country.

The first introduction of CNG was out of necessity during the Second World War due to shortages of conventional crude oil-derived motor fuels. Since then, its usage has reached eighty-five countries and five continents driven by concerns about greenhouse gas emissions, which have led to a preference for natural gas vehicles (NGVs) over conventional automobiles. Up to now, the applications of CNG in African countries such as Egypt, Mozambique and South Africa, has been as an alternative vehicle fuel. By introducing CNG to industrial customers, SLCNG is an industry trailblazer, building a new market for natural gas for future generations.

To underpin this fledgling CNG market, SLCNG is currently expanding its Umbogintwini CNG plant to double its compressor capacity. This significant investment will create 20 new jobs. Given the high levels of unemployment in our country, SLCNG is pleased to contribute in a small way to the alleviation of this challenge. Moreover, this processing plant investment is a springboard from which the NGV market will take off. The availability of CNG will enable large vehicle fleet owners to convert their vehicles to natural gas thereby reducing their carbon footprint. In one fell swoop, SLCNG is facilitating the emergence of two big CNG markets being the industrial users and the motor vehicle market.

Why are customers using CN G?

By compressing the gas, the CNG technology enables the economic delivery of relatively large volumes of gas to customers up to 150 kilometres from the gas source. SLCNG compresses methane rich gas in Umbogintwini, loads it in pressurised vessels then trucks it to its customers. Customers convert to CNG from other sources of fuel such as LPG, diesel or petrol because CNG is up to 30% cheaper than these fuels and has 20-40% less CO and CO2 emissions. Like most developing countries, South Africa has a limited gas pipeline infrastructure, which means  SLCNG is opening up a new market for natural gas.

The SLG investment in CNG provides customers with an integrated value proposition for gas. Unlike aspirant CNG competitors, SLG has a secure supply of piped gas, which it can either supply directly to a customer when they are in proximity to the pipeline or through CNG for a customer that is far from the pipeline network. CNG is delivered onsite via the SLCNG infrastructure, and the customer does not bear any working capital costs. SLCNG manages the installation of the necessary equipment at a customer’s site to depressurise the gas and converts existing combustion systems to CNG. As an ISO9001 certified
company, SLG ensures that the client’s installation complies with all the safety standards. SLCNG provides customers with the required training and technical support to ensure a smooth transition to CNG technology.

SLCNG’s target customers include large industrial customers that may be using LPG or diesel as a fuel source for heating or power generation. The typical NGV customer will have a large fleet of vehicles or forklifts that refuel at company depots.

Any customers interested to convert to CNG or connect to the gas pipeline may visit our website on www.slgas.co.za or call our National Sales Manager Mr. Mthoko Mbatha on 031-812-0555. SLG is a wholly owned BBBEE company with a level 2 rating.