South Africa’s first-ever private Liquefied Natural Gas (LNG) auction is about to go live.
Renergen has announced that interested parties are invited to apply to bid for the allocation of LNG, which will be produced from the company’s Virginia Gas Project.
Located in the Free State, approximately 250km southwest of Johannesburg, the Virginia Gas Project comprises exploration and production rights of 187,000ha of gas fields across Welkom, Virginia and Theunissen.
With an average of greater than 95% methane and almost zero higher alkanes, Renergen will produce high-quality LNG and position the company’s product as the “ideal substitute for liquid fuels”, which will burn cleaner and release fewer emissions.
Consumption of LNG does not require significant changes to the infrastructure required for liquid petroleum gas (LPG), making the switch efficient and cost-effective.
The positive characteristics of LNG is well-established globally, underpinned by an efficient, cost-effective and clean energy source for transportation, power generation and industrial use.
LNG is the cleanest-burning of all hydrocarbons and offers a less carbon-intensive substitute for South Africa’s existing transport fuel, thermal fuel, and power.
Emerging domestic natural gas and helium producer Renergen is the first local company to supply LNG for domestic supply as opposed to using imported sources.
By 2021, the company will complete its Phase 1 expansion plans of the Virginia Gas Project and will be producing LNG and helium. This will see the firm become the first distributor of LNG at filling stations (in partnership with Total) in the country and the only domestic producer of helium.
It is anticipated that Phase 2 of the Virginia Gas Project will be available by 2023. Phase 2 production at the Virginia Gas Project will bolster the 2021 Phase 1 production, providing availability of LNG across all major highways in South Africa, with surplus volume to be made available to the market.
Interested parties are invited to apply for this allocation of LNG from phase 2, in South Africa’ first-ever LNG auction on 26 August 2020.