Renergen finds more gas to feed South African LNG project

South Africa’s Renergen said it has found more gas at its Victoria project, further underpinning its LNG and helium development.

The firm said in a statement on Thursday it found gas at well MDR1, 300 meters north of its producing MDR5 well.

Both wells are part of its Virginia gas project in South Africa’s Free State province that will feed the small-scale LNG plant, mainly for truck fuel.

This also marks the second gas find for the producer in a week. Renergen said the well is now producing gas at an estimated 86,000 standard cubic feet per day.

“MDR1 is another important well for us for two reasons. The most obvious reason is that it is less than 600 meters from the new plant, so it will tie in quickly and easily,” Renergen chief executive Stefano Marani, said.

“The second reason this is important is that we now have an accumulating body of evidence to suggest that we can significantly reduce spacing between wells without influencing individual well production, which, in turn, means a higher well density in the prevailing production scenario,” he said.

The new well will feed the first phase of Renergen’s LNG and helium production project.

To remind, a unit of Italian contractor Saipem said in January it won a front-end engineering and design contract for the second phase of Renergen’s project.

Renergen aims to launch the first production phase of the Victoria project with initial volumes of around 350kg of helium and 2,500GJ of LNG later this year.

Moreover, the second phase would significantly boost LNG volumes for distribution in South Africa while helium would go for exports, Renergen says.

- Advertisements -

Most Popular

ExxonMobil working on larger Rovuma LNG export project in Mozambique

US energy giant ExxonMobil has boosted the capacity of the planned Rovuma LNG onshore terminal in Mozambique and is...

Sempra takes FID on Port Arthur LNG project

US LNG player Sempra Infrastructure, a unit of Sempra, has taken a final investment decision for the first phase...

Excelerate to buy FSRU from Maran Gas

US floating LNG player Excelerate Energy plans to exercise an option to buy the 2020-built FSRU Sequoia from Greece’s...

More News Like This

Renergen resumes LNG production at South African plant after repairs

Renergen said it had resumed LNG production at its small plant in South Africa following repair work on a...

Renergen says South Africa’s first LNG plant launched

Renergen has launched what it says is South Africa's first commercial LNG production plant as part of the first...

South Africa’s CEF to buy 10 percent stake in Renergen’s Virginia gas project

South Africa's Central Energy Fund plans to buy a 10 percent stake in Renergen's Virginia LNG and helium development,...

Canada’s Ivanhoe eyes controlling stake in South Africa’s Renergen

Canadian mining company Ivanhoe Mines could acquire a controlling stake in South Africa's Renergen, the developer of the Virginia...