Emerging natural gas producer Renergen will host South Africa’s first-ever liquid natural gas (LNG) auction.

The company has invited interested parties to apply to bid for the allocation of LNG, which will be produced at Renergen’s Virginia gas project, in the Free State.

Renergen says it holds the first and only onshore petroleum production right in South Africa.

With an average of greater than 95% methane and almost zero higher alkanes, Renergen will produce LNG of outstanding purity, placing the company’s product as the ideal substitute for liquid fuels, which will burn cleaner and release fewer emissions.

Importantly, the company explains, the consumption of LNG does not require significant changes to the infrastructure required for liquid petroleum gas, making the switch efficient and cost-effective.

Renergen is the first South Africa-based company to supply LNG from domestic supply, instead of imported sources. By 2021, the company will complete its Phase 1 expansion plans for the Virginia gas project and will be producing LNG and helium.

This major milestone will see Renergen become the first distributor of LNG at filling stations – in partnership with Total – in the country and the only domestic producer of helium.

Renergen anticipates that Phase 2 of the Virginia gas project will be available by 2023.

Phase 2 production at the Virginia project will bolster the 2021 Phase 1 production, providing availability of LNG across all major highways in South Africa, with surplus volume to be made available to the market.

 The positive characteristics of LNG are well-established globally, underpinned by an efficient, cost-effective, and clean energy source for transportation, power generation, and industrial use.

Renergen says LNG is the cleanest-burning of all hydrocarbons and offers a less carbon-intensive substitute for South Africa’s existing transport fuel, thermal fuel and power.