Ardagh Glass Packaging will take delivery of liquefied natural gas (LNG) at its Belleville, South Africa production facility.
It has struck an agreement with Renergen for deliveries of LNG, and which will replace LPG as a fuel heat source at the glass production site.
The fuel will be sourced from Renergen’s Virginia gas plant, located 250km southwest of Johannesburg, South Africa.
Renergen will maintain the LNG equipment and storage facilities throughout the original contract duration.
Ardagh Africa’s CEO Paul Curnow said: “The introduction of domestically supplied LNG to replace imported, more carbon-intensive LPG ticks three very important boxes for us, namely, localisation, de-carbonisation and energy security."
Stefano Marani, CEO of Renergen, said: "Commercial LNG is now finally a reality in South Africa, and the best part is that it is not imported but rather produced locally, contributing to the country's energy security.
“We are proud to have finally achieved this enormous milestone and grateful to our customers who have decided to walk this journey with us.
"We look forward to becoming an integral component of their energy system as we explore future expansion in the supply of domestically produced LNG.”
Renergen's existing operations will be expanded over the next three to four years through the development and construction of Phase 2 of the Virginia Gas Project, which will see the company produce an estimated 680 tonnes per day of LNG and up to one million standard cubic feet of liquid helium per day.