Renergen has launched what it says is South Africa’s first commercial LNG production plant as part of the first phase of its Virginia gas and helium development.
The firm said in a statement on Monday that the Virginia gas project is now operational, transitioning Renergen from explorer to producer status by producing liquid hydrocarbons, with the helium module producing liquid in “due course”.
Renergen said it has beneficial use of the system and has commenced filling of bulk storage tanks to begin delivery of product to customers.
Importantly, through start of operations, Virginia becomes South Africa’s first commercial LNG plant, according to the firm.
Renergen added it would now focus on ramping-up operations over the coming months to full Phase 1 capacity which would play a “key role” in reducing the country’s carbon footprint by substituting diesel in trucks and for commercial users.
The first production phase of the Victoria project will produce around 350kg of helium and 2,500GJ of LNG. Renergen signed LNG supply deals with a unit of Italtile, Ceramic Industries, and Consol Glass.
Earlier this year, it also signed stake sale and investment deals with Canadian mining company Ivanhoe Mines and South Africa’s Central Energy Fund.
Renergen also plans the second stage of the Virginia gas project.
“This watershed moment in the company’s lifecycle has finally arrived,” CEO Stefano Marani said in the statement.
“This is a significant step on the path to showing the world that Renergen can become a global player in liquid helium supply and a material local supplier of much needed LNG,” he said.
