Converting SME’s to Save on Operation Costs

Reducing Energy Costs for SMEs

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Small to Medium Enterprises (SMEs) are a cornerstone of South Africa’s economy. The government’s National Development Plan 2030 (NDP 2030) looks to SMEs as the major sources of employment and drivers of growth in our economy. 

Energy, under its operational cost, is one of the many expenses faced by the SME.  Sourcing a reliable source that is not overly expensive is essential to keeping these businesses functioning, every rand counts to these businesses. 

Natural Gas is cost-effective with stable prices that do not fluctuate with the price of petrol, diesel or electricity. It burns cleaner than many commercially and industrially used sources of energy.  

Natural Gas Consumption around the World

Across the globe, businesses are increasingly relying on Natural Gas to run profitable businesses. 

“Trinidad and Tobago, Brunei, the United Arab Emirates, Belarus, Oman, Tunisia, Azerbaijan, Algeria, Moldova, and Singapore generate 91-99.6%, and Bangladesh and Nigeria more than 80% of their electricity from natural gas” WorldAtlas

The affordability of Natural Gas is not the only reason it has become so favourable. The versatility of the gas makes it very convenient. SMEs can literally function on a complete scale using Natural Gas, this includes heating buildings, fuelling vehicles, water heating, preparing foods, powering industrial furnaces and boilers, running air conditioners and even generating electricity! 

According to WorldAtlas statistics; Production of electricity from Natural Gas globally rose from 10% in 1971 and peaked at 22% in 2010.

There is a global receptiveness to the use of Natural Gas. The increase in the use of Natural Gas is also closely linked to its environmental benefits when compared to other fossil fuels, particularly for its ability to maintain great air quality and low greenhouse gas emissions even at its peak use. This is great news for SMEs in South Africa considering the emerging of the Carbon Tax Bill!  

The Future of Natural Gas supply 

Historically, the use of Natural Gas has been constrained due to deficiency in the required infrastructure. This explains why South African seems far behind when compared to the rest of the world with regards to Natural Gas conversions. 

However, CNG Holdings, having seen this hurdle, through its division, the Virtual Gas Network, introduced a simple and reliable way to access Natural Gas, even in areas that do that have the traditional Natural Gas infrastructure! The Virtual Gas Network supplies compressed natural gas through a virtual gas distribution network. Through this innovative modular road transport system, the Virtual Gas Network can safely and economically transport natural gas to refuelling stations, gas distribution networks, industries, power generation systems, as well as to customers who are not on an existing gas pipeline. This trailer road distribution system is ideal for SMEs that require a reliable and inexpensive source of energy that assures quality energy at an affordable rate. These businesses cannot afford to have any downtime on production! 

The conversion to Natural Gas could help small businesses lower their operation costs and focus on providing high-quality goods and services to their customers. The supply of Natural Gas for commercial and industrial use continues to grow due to the emergence and advancement of key technologies that unlock the supply of Natural Gas. 

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Issue 39