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DNG Energy ready to shake up energy sector – unpacks the potential of LNG

DNG Energy ready to shake up energy sector – unpacks the potential of LNG

“In order for economies to grow, we need energy. Cost effective, clean energy is paramount. That is where natural gas comes into play,” said CEO, Founder of DNG Energy, Aldworth Mbalati in a recent interview with the Economist.

Mbalati who was in the country, for the third edition of the International Oil and Gas Conference held from 24 to 25 April through a presentation managed to showcase opportunities that Liquefied natural gas (LNG) holds.

At the event he presented the ‘Africa’s downstream outlook: Supply, Distribution and Logistics’ under the theme: ‘LNG virtual pipeline as a disruptor.’

Mbalati told the Economist that with the average age of an African today is 19,4 years, the continent has a young population that requires to be brought at least into middle class segment of the economy hence his vision lies with the LNG revolution.

“With LNG, large volumes of gas can be carried to remote areas in order to provide much needed energy. With that said, LNG is at best 50% cheaper to diesel and petrol. There lies the power of disruption,” he said.

According to him not only is it cheaper but will help a displacer if dirty fuel to a much cleaner option for the betterment of humanity.

Mbalati in a move to achieve this said his firm seeks to put LNG in a 40 foot ISO container that can easily be transported by road, rail and sea.

“The rail network will serve as the primary point of getting LNG distributed in the SADC region. The rail capacity is under utilized hence creating an opportunity of a vast distribution network,” he added.

According to him the virtual pipeline network will assist broadening the customer demand for gas and as a result will make exploration much more attractive. “It will strengthen the case of the gas economy,” he said.

Asked on what the role the large petroleum companies in the virtual pipeline will be, he said that, they were the first movers in the industry and it is fair play.

“Just like they were in our position in the infancy of the oil industry. Change has come and an opportunity has been created for indigenous compound to lead,” he added.

According to Mbalati in Africa’s downstream outlook, Namibia can and has the potential of becoming a hub for the Atlantic market and its neighbouring countries.

Mbalati’s current project at DNG Energy has taken the industry by storm, living up to its promise of providing the energy advantage for future Africa.

DNG Energy is currently bringing LNG to South Africa, and in doing so is making a cleaner, cheaper fuel alternative available to the market.

Mbalati first established DNG Energy in 2013. By 2014, he was already operating in Nigeria. In 2015, he commenced a widescale infrastructure programme that would see over US$5 billion of investments in the next five years, creating thousands of jobs, and driving economic growth.

In 2016, his company then developed an LNG Virtual pipeline solution for Ghana. In 2017, DNG Energy started identifying 400 sites near and next to Taxi ranks around the country, that would be home to state-of-the art, smart LNG refuelling stations.

And just last year, in 2018, Mbalati commissioned Southern African Shipyards to build the largest vessel by weight ever to be built on the African continent, and scheduled to go into service no later than 2020.


 

About The Author

Musa Carter

Musa Carter is a long-standing freelance contributor to the editorial team and also an active reporter. He gathers and verifies factual information regarding stories through interviews, observation and research. For the digital Economist, he promotes targeted content through various social networking sites such as the Economist facebook page (/Nameconomist/) and Twitter.

Following reverse listing, public can now acquire shareholding in Paratus Namibia

Promotion

20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.