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 has marked the start of the pipeline construction at its flagship Virginia gas project.

Renergen CEO Stefano Marani has told Engineering News Online that the groundbreaking at the project is “the culmination of many years of work” and marks the start of the 52 km pipeline’s construction, which will enable the company to connect all 12 of its gas wells to one centralised location.

“The pilot plant . . . is only one well . . . now, we [can] connect all 12 wells, [thereby laying] the foundation for all future wells to be connected to the pipeline,” he has explained.

Construction of the pipeline will include the digging of the trenches and the laying of the pipes, as well as the installation of the valves and water drainage system.

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).

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.