https://www.engineeringnews.co.za
Africa|Construction|Gas|PROJECT|Screening|Operations
Africa|Construction|Gas|PROJECT|Screening|Operations
africa|construction|gas|project|screening|operations

Renergen nears financing close for Virginia gas’ Phase 2

6th June 2022

By: Marleny Arnoldi

Deputy Editor Online

     

Font size: - +

JSE and ASX-listed emerging helium and natural gas producer Renergen has signed a retainer letter with the US International Development Finance Corporation (DFC) for a possible $500-million loan to finance the Phase 2 development of the company’s Virginia gas project, in the Free State province of South Africa.

DFC provided $40-million in financing for Phase 1 operations and is currently screening the proposal for Phase 2 financing.

Renergen says it is considering co-lenders alongside DFC, after receiving multiple letters of intent from additional lenders.

All lenders are in the process of reviewing Phase 2 information and will be conducting an on site inspection of the Phase 1 operations, as part of the necessary due diligence.

For Phase 2, Renergen plans to secure 65% debt funding, while equity funding will comprise the balance.

“We find ourselves in a strong position as we embark on turning on the Virginia gas project plant in coming weeks. The company has grown significantly in size and scale and, importantly, now has the ability to sculpt terms to suit our financing requirements,” comments CEO Stefano Marani.

The Virginia gas project spans 187 000 ha of gas fields across Welkom, Virginia and Theunissen, in the Free State. The full project entails the construction of a 52 km gas-gathering pipeline and cryogenic liquefication processing facilities.

Phase 1 is expected to produce 350 kg/d of helium and 50 t/d of liquefied natural gas, with Phase 2 earmarked to increase these numbers.

As of May 30, the Phase 1 plant was being commissioned.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024

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:0.107 0.164s - 160pq - 2rq
Subscribe Now