HomeIndustry SectorsFinance and PolicyUS financier supports gas infrastructure development in South Africa

US financier supports gas infrastructure development in South Africa

The US International Development Finance Corporation (DFC), announced the first disbursement of a $40 million loan to Tetra4 Proprietary to support the development of critical gas infrastructure and advance energy security in South Africa.

The announcement was made by Chief Executive Officer Adam Boehler at the Africa Investment Forum in Johannesburg, South Africa.

“One of the most powerful ways we can create opportunity in emerging markets is by developing infrastructure that lays a strong foundation for trade and investment,” said Boehler.

He added: “By helping South Africa develop its national resources, this project will support sustainable economic growth and foster regional stability.”

With the agency’s support, Tetra4 will launch the first phase of the development and commercialisation of a natural gas and helium field in South Africa.

Onshore natural gas liquefaction facility

The loan will also support the construction and operation of a natural gas gathering pipeline as well as a micro-scale liquefied natural gas and helium liquefaction plant.

The project will be the first and only onshore natural gas liquefaction facility in South Africa. As Tetra4’s gas reserves are a non-depleting and renewing resource, the facility will both improve the reliability and the supply of energy.

Further, by offering a source that is estimated to be 25% cheaper than current alternatives, the project will reduce reliance on imported diesel fuels and diversify the country’s energy mix.

Additionally, the project will introduce modern technology that is entirely new to South Africa and help address the global shortage of helium, which has critical applications in medicine, telecommunications, and other highly developmental sectors.

Helium is also one of 35 mineral commodities identified by the US Department of the Interior as critical to the economic and national security of the US Over the lifespan of the project, the Tetra4 facility is expected to increase the global supply of helium by 8%.

Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.