Name of the Project
Free State natural gas project.
Location
Free State, South Africa.
Client
Tetra4, a subsidiary of Renergen.
Project Description
The project entails the construction of a 107 km pipeline network and associated gas processing facilities.
Jobs to Be Created
Not stated.
Value
The project has received R218-million in loan finance from the Industrial Development Corporation to support the development of the project.
The funding is subject to the fulfilment of certain criteria. The IDC loan has an eight-year term and should be drawn down by August 2019.
Renergen is also planning to raise a further R145-million in equity finance to implement the project, although it has said that there is no urgency to approach shareholders.
Duration
The record of decision for the project is expected to be granted by the end of this month or in early August, with pipeline construction expected to begin before the end of 2017.
Commercial operation is expected before the end of the first half of 2018, if everything goes according to plan.
Latest Developments
Following the recent uncontested submission of the environmental-impact assessment for the construction of the pipeline in Virginia, Tetra4 now awaits the final record of decision from the Petroleum Agency of South Africa for development to start.
Key Contracts and Suppliers
Not stated.
On Budget and on Time?
Too early to state.
Contact Details for Project Information
Renergen, tel +27 10 045 6000, email info@renergen.co.za or investorrelations@renergen.co.za.