https://www.engineeringnews.co.za
Africa|Construction|Contractor|Cutting|Energy|Engineering|EPCM|Export|Freight|Gas|LNG|Logistics|Mining|Petroleum|PROJECT|Resources|Shell|Sustainable|Technology|transport|Trucks|Equipment|Maintenance|Solutions|Operations
Africa|Construction|Contractor|Cutting|Energy|Engineering|EPCM|Export|Freight|Gas|LNG|Logistics|Mining|Petroleum|PROJECT|Resources|Shell|Sustainable|Technology|transport|Trucks|Equipment|Maintenance|Solutions|Operations
africa|construction|contractor|cutting|energy|engineering|epcm|export|freight|gas|lng|logistics|mining|petroleum|project|resources|shell|sustainable|technology|transport|trucks|equipment|maintenance|solutions|operations

Virginia gas project, South Africa

14th February 2020

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

Font size: - +

Name of the Project
Virginia gas project.

Location
The project spans 187 000 ha of gasfields across Welkom, Virginia and Theunissen, in the Free State, South Africa.

Project Owner/s
Tetra4, a subsidiary of Renergen.

Project Description
The project entails the construction of a 52 km gas-gathering pipeline and cryogenic liquefaction processing facilities.

The aim is to produce all South Africa’s helium requirements and potentially export the balance of production, as well as produce the first liquefied natural gas (LNG) locally available for commercial consumption.

Phase 1 aims to produce 350 kg/d of helium and ramp up to 1.2 t/d and 5 t/d of helium in Phase 2.

Additionally, Renergen will concurrently produce up to 10 000 GJ/d of LNG upon reaching full production. This amount of energy is equivalent to 277 000 ℓ/d of diesel.

Should production be maintained, the production right has a remaining life span of about 23 years.

Potential Job Creation
Despite the project’s size relative to traditional mining operations, it will create an estimated 360 temporary jobs during development and construction, and an estimated 82 permanent jobs once all the clusters have been developed.

Capital Expenditure
The total projected capital expenditure to roll out the first phase of production is estimated at R500-million, which includes the cryogenic liquefiers.

Planned Start /End Date
Phase 1 of the Virginia project is expected to start producing LNG and liquid helium by 2021.

Phase 2 is expected to start construction in 2022 or 2023.

Latest Developments
Renergen subsidiary Tetra4 has secured an agreement with Bulk Hauliers International Transport (BHIT) for the supply of LNG from the Virginia gas project.

The LNG will be used to fuel about 50 of BHIT’s trucks, meaning that operator costs and the vehicle life-cycle maintenance costs will be significantly reduced.

Renergen CEO Stefano Marani has said that Tetra4 “is proud to be associated with BHIT as they embark on their new venture to disrupt the local logistics market using cutting-edge technology and international best practice”.

BHIT director James Cohen has said that BHIT is committed to providing “sustainable transport solutions” and that running its trucks on locally produced LNG “fits in perfectly” with this goal.

BHIT operates a premium fleet of truck-tractor combinations, with a focus on the transportation of general freight and dangerous goods throughout Southern Africa.

Tetra4 holds the first, and currently only, onshore petroleum production licence issued by the Department of Mineral Resources and Energy through the Petroleum Agency of South Africa.

Key Contracts and Suppliers
MHA Petroleum (helium reserve independent expert report) and VGI (owner’s engineer with regard to the engineering and procurement phase of the project).

Gas gathering work: EPCM Bonisana, a subsidiary of EPCM Holdings (EPC contractor).

Western Shell Cryogenic Equipment (contract to supply the technology and equipment for the plant).

Contact Details for Project Information
Renergen, tel +27 10 045 6000, email info@renergen.co.za or investorrelations@renergen.co.za.

Edited by Creamer Media Reporter

Comments

Showroom

Alco-Safe
Alco-Safe

An unmanned breathalyser that is made to be tough and simple to use. Can be used in any environment for operator-free breathalyser testing.

VISIT SHOWROOM 
Stewarts & Lloyds
Stewarts & Lloyds

Stewarts & Lloyds today supplies steel and tube, pipe and fittings, valves, pumps, irrigation, fencing, profiling and roofing products. The cash...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.189 0.263s - 165pq - 2rq
Subscribe Now