South Africa’s Renergen inks another LNG supply deal

South Africa’s Renergen said it has signed another liquefied natural gas supply deal for its Virginia LNG and helium development.

According to a statement on Thursday, the firm would start supplying LNG from the first phase of its project to Johannesburg-based tile manufacturer and a unit of Italtile, Ceramic Industries, in the first quarter of 2022.

Under the five-year deal, Renergen said it would supply up to 800 gigajoules of LNG daily at a fixed price with annual escalation linked to the consumer price index.

In addition, the supply contract includes two more five-year renewal periods at the customer’s discretion.

The agreement is subject to several conditions, including Renergen successfully commissioning its first phase of operations.

Stefano Marani, CEO of Renergen, said this deal marked the second and final industrial contract from the first phase of the Virginia LNG project.

Last year, the natural gas and helium producer revealed it had signed its first LNG supply deal for its project with Consol Glass.

Also a unit of Italian contractor Saipem said last year it had 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, according to Renergen.

Most Popular

Atlantic LNG shipping rates dip to just $18,250 per day

Last week, LNG shipping rates continued to slide in both basins. “Spark30S Atlantic rates have dropped to record lows, reducing...

ExxonMobil CEO says Golden Pass LNG launch could slip into 2026

State-owned QatarEnergy owns a 70 percent stake in the Golden Pass project with a capacity of more than 18...

Kosmos: Tortue FLNG to start production at end of fourth quarter

In February, the 2.5 mtpa FLNG, which was converted from a 1975-built Moss LNG carrier with a storage...

More News Like This

Australia’s Woodside moving forward with Scarborough work

When operational, the 433 km trunkline will transport gas from the offshore Scarborough field to the onshore Pluto LNG...

McDermott, partners bag Rovuma LNG FEED contract

McDermott released a statement on Tuesday revealing the FEED award for the Rovuma LNG Phase 1 project, a joint...

Saipem scores $4 billion North Field job from QatarEnergy LNG

Saipem said in a statement on Sunday it won an offshore EPC contract for the combined COMP3A & COMP3B...

Italy’s Eni sells 10 percent stake in Saipem

Italian energy firm Eni has sold a 10 percent stake in compatriot energy services company Saipem. Eni announced the...