JSE-listed gas company Renergen has announced that its 20-year Virginia Gas Project plant (Virginia), based in the Free State, is now operational, making it South Africa’s first commercial liquified natural gas (LNG) station.
Renergen says the plant currently produces liquid hydrocarbons with the helium module, also intended to produce liquid, anticipated to take shape in due course.
This comes after the Central Energy Fund (CEF) completed its due diligence on an agreement with Renergen to invest R1 billion for a 10% stake in the plant in August.
Read the Sens announcement here.
The gas producer says it has further commenced the filling of bulk storage tanks to begin delivering the product to customers.
“Renergen will now focus on ramping-up operations over the coming months to full Phase One capacity, which will play a key role in reducing the country’s carbon footprint by substituting diesel in trucks and for commercial users,” it added in a statement issued on Monday.
Stefano Marani, Renergen’s CEO, says the move is a significant step towards showing the world that the company can become a global player in liquid helium supply and a material local supplier of LNG.
“The transformation of the company since first listing in 2015 has been truly incredible, and I am very proud of the efforts, hard work and determination of the team in getting Renergen to the position we find ourselves in today.
“Virginia is a world-class project, and we will now focus on ramping up operations to full Phase One.”
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Nondumiso Lehutso is a Moneyweb intern.