South Africa’s Renergen said it has signed a liquefied natural gas supply deal for its Victoria LNG and helium development.
Renergen said in a statement it would start delivering LNG from the first phase of its Virginia project to Consol Glass, a supplier of glass packaging in South Africa, in January 2022.
The 5-year contract would be linked to the floating LPG price in South Africa, as published by the Department of Mineral Resources and Energy, according to Renergen.
Moreover, due to equipment testing, the firm said it would ramp up volumes within the first three months of the contract. The volumes would reach about 14 tons per day over a period of 3 months.
This contract marks the first for the company as the supplies would not go for gas-powered trucks to substitute diesel, Renergen said.
Phased LNG and helium 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.
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.
The second phase would significantly boost LNG volumes for distribution in South Africa while helium would go for exports, Renergen says.