Vilgro Energy's trading and related infrastructure activities are focused on liquid petroleum products and natural gas. We believe the Southern African region now offers unique opportunities for various gas discoveries to be monetized and contribute to industrialization while supporting the transition to greener energy.
Natural gas has a competitive advantage as it can not only be utilized to generate power, but also serves as a reliable and cost-effective fuel source for commercial and industrial users as well as for chemical production.
Natural gas in its pure form is obtained from gas fields and is also extracted in association with crude petroleum from oil fields. Its principal heat producing constituents are methane (CH₄) and hydrogen (H₂).
For chemical production:
The key process step is the production of synthesis gas from gas reforming or gasification, which is synthesized into various hydrocarbon products. Synthesis gas is a combination of Carbon Monoxide (CO) and Hydrogen (H₂).
Natural gas also contains ethane (C₂H₆), propane (C₃H₈), butane (C₄H₁₀), and pentane (C₅H₁₂) in varying proportions. Propane and butane are the main constituents of LPG (Liquefied Petroleum Gas).
Natural gas may contain impurities such as Hydrogen Sulphide (H₂S) which must be removed prior to transportation. During processing, marketable products known as Natural Gas Liquids (NGLs) can be extracted and sold.
LNG (Liquefied Natural Gas) was developed as a means of transporting natural gas over long distances (3000km). LNG takes up about 1/600th the volume of natural gas in gaseous state.
The first LNG exports began in 1969 from Alaska to Japan, initiating the growth of what is now the largest natural gas demand center in the world.
Discovered by Gulf Oil, these fields remained stranded for 40 years until monetization began in 2004 when Sasol provided an anchor market. Initial reserves were approximately 5 TCF.
Located offshore Namibia, this discovery has yet to be fully developed but represents significant potential for the region's energy needs.
Located in Bredasdorp Block 9 off South Africa's Western Cape, these fields remain important potential sources for regional energy supply.
Of particular regional interest are recent world-class gas discoveries in Mozambique and Namibia, which require proactive involvement from South Africa as the region's most developed natural gas market.
South Africa is now surrounded by major gas discoveries as well as "stranded" gas fields awaiting market solutions. Notably, international players from Italy, Japan, India, and Thailand are participating in Mozambique's Rovuma LNG development, while South African entities remain conspicuously absent.
The potential of shale gas reserves in South Africa is large, though environmental, regulatory and infrastructure challenges remain critical barriers.
Vilgro Energy's founders have decades of experience in gas monetization projects globally, including critical roles in the Mozambique-Secunda Project - a showcase of successful cross-border cooperation.
This project involved construction of the most cost-effective pipeline (per unit kilometer) built in sub-Saharan Africa, operating uninterrupted for 21 years.
Partnering with Vilgro Energy provides access to extensive regional networks, regulatory knowledge, and experience with business models for gas monetization that can accelerate market entry.
Our team has hands-on experience with major gas infrastructure projects across Africa