Navigating Load shedding post lockdown

The Energy to grow your business

There is no doubt that the South African economy is going to have a tough 2020. Virtual Gas Network has embarked on a drive to help manufacturers increase savings on energy, through an established gas network.  Majority of industries throughout South Africa can now take advantage of major reductions in cost through the virtual use of Compressed Natural Gas (CNG).

Recovering costs after lockdown

Manufacturers running on electricity face two challenges. The first is the reliability of this energy source and secondly the increase in the pricing of electricity. With an estimated 70% of the workforce unable to work during the lockdown, it is safe to ascertain that once the lockdown is lifted, load shedding will commence. Unlike fuel, the cost of producing electricity is not demand-driven. Reported in The Independent online, it is estimated that should Eskom have its way, South African’s could be paying 90% more for electricity come 2022. Considering the shift to CNG could help business source the energy to grow.

Why move to CNG now

Pricing is a major factor in the decision to move to CNG. CNG’s pricing is more stable than conventional heavy fuels and eliminates the uncertainty associated with price fluctuations of liquefied petroleum gas (LPG), diesel and paraffin.

CNG is reliable. An energy product in abundance, CNG always has spare capacity on-site in the form of additional storage tanks. This is ideally suited for unpredictability in demand post lockdown. In essence, CNG is there where and whenever you need it.

Through a virtual network, CNG is available to those companies “off-grid”. Through a sub-station on the customer’s premises, CNG is on-tap 24/365.

The future is CNG

MarketWatch predicted the future market size of CNG reaching $4.8 billion by 2025. South Africa plays an important role in this market showing continues market growth in both the industrial and transportation sectors. 

With the rise in environmental issues such as climatic change and depleting ozone layer many nations, including South Africa, have radically increased use of CNG in manufacturing.

South Africa is not alone. Large investments in the North African region are expected to exceed $30 billion a year. This amount is anticipated to equal at least 3 percent of North Africa’s (collective) Gross Domestic Product (GDP).

CNG benefits

Compressed Natural Gas is a tried and tested energy source. Since the late 1700’s Natural Gas was used in manufacturing and power generation with CNG coming into use in the 1880s. With reduced emissions using CNG contributes to a company’s carbon credits, a benefit in itself.

Manufacturing is driven by demand. Purchasing CNG means you can plan, budget and operate more efficiently. As the economy recovers, demand increase, Natural Gas supply equipment can be easily installed and provided at no direct cost to the company.  

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