Renergen has switched on South Africa’s first onshore gas facility by producing liquid natural gas (LNG), with the helium module expected to produce liquid in due course.
RENERGEN on Monday switched on South Africa’s first onshore gas facility by producing liquid natural gas (LNG), with the helium module expected to produce liquid in due course.
The “major milestone” at the now operational Virginia Gas Project would transition Renergen from explorer to producer status, the company said in a statement.
Renergen had started filling its bulk-storage tanks to begin delivery of product to customers.
The share price responded positively, trading 2.8 percent higher to R35.47 on Monday afternoon, well up from R20.82 a year before and from R8 three years ago.
The company said it would now focus on ramping-up operations over the coming months to full phase 1 capacity, which it expected would play a key role in reducing the country’s carbon footprint by substituting diesel in trucks and for commercial users.
Chief executive Stefano Marani said, “This watershed moment in the company’s lifecycle has finally arrived. This is a significant step on the path to showing the world that Renergen can become a global player in liquid helium supply and a material local supplier of much needed LNG.”
“Virginia is a world-class project, and we will now focus on ramping-up operations to full phase 1 capacity over the coming months,” he said.
Three weeks ago the Central Energy Fund completed due diligence on a deal to invest R1 billion for a 10 percent ownership stake in the Virginia Gas Project.
The Central Energy fund was also expected to bring with the transaction its experience in upstream oil and gas exploration, midstream natural gas to liquids-processing and large scale pipeline operations and maintenance experience.
– BUSINESS REPORT
