https://www.engineeringnews.co.za
Africa|Construction|Contractor|Design|Engineering|EPCM|Export|Fire|Gas|Instrumentation|LNG|Mining|Petroleum|PROJECT|Projects|Shell|System|Systems|Technology|Testing|Trucks|Valves|Equipment|Drilling|Operations
Africa|Construction|Contractor|Design|Engineering|EPCM|Export|Fire|Gas|Instrumentation|LNG|Mining|Petroleum|PROJECT|Projects|Shell|System|Systems|Technology|Testing|Trucks|Valves|Equipment|Drilling|Operations
africa|construction|contractor|design|engineering|epcm|export|fire|gas|instrumentation|lng|mining|petroleum|project|projects|shell|system|systems|technology|testing|trucks|valves|equipment|drilling|operations

Virginia gas project, South Africa – update

Image of LNG tanks at the Virginia gas project

6th May 2022

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 domestic natural gas and helium producer Renergen.

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

The aim is to produce all South Africa’s helium requirements and 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. Output will be increased through the construction of Phase 2 expected around 2025, “arguably making it among the biggest helium projects on the planet", CEO Stefano Marani has said.

This will deliver more than 0.4-billion cubic feet (bcf) of helium, which, over 19 years, amounts to 7.6 bcf, or just over half its estimated 2P proven reserves.

Phase 1 of the project will produce about 50 t/d of LNG, which is about 75 000 ℓ/d of diesel equivalent. Phase 2 will potentially increase this to the LNG equivalent of about 1 000 000 ℓ/d of diesel, subject to the final agreed design currently being scoped by Renergen and offtaker Ivanhoe Mines.

Phase 2 allocations will likely result in the project’s transforming into a significant LNG production facility, placing the project more in line with global small- to medium-scale production capabilities.

Phase 2 is intended to have the first stage completed by 2025.

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 160 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 R1-billion, which includes the cryogenic liquefiers.

Planned Start/End Date
Phase 1 of the Virginia project was expected to start producing LNG and liquid helium by the end of 2021, but this was delayed owing to Covid-19. The revised schedule forecasts the startup of commercial operations in April 2022.

Phase 2 is expected to complete construction in 2025 or 2026.

Latest Developments
Renergen has said that it is making “strong” progress in terms of the commissioning of Phase 1 of the Virginia gas project.

Cold boxes – which are self-supporting structures that protect cryogenic equipment such as heat exchangers, core-in-drums, distillation columns, piping, valves and instrumentation – are currently being purged and precooled using liquid nitrogen, which is an important process in preparing the units for acceptance of gas from the field.

Renergen has stated that a significant major advantage of using nitrogen to cool the system is that it simultaneously purges the system of any oxygen-rich air, which significantly reduces risks associated with fires during startup.

Further testing is under way as part of the commissioning process.

So far, the company has completed and commissioned fire protection, instrument air systems and various smaller subsystems. The conduction oil system has been noted as the next major item to be completed for process unit startup.

Key Contracts, Suppliers and Consultants
Phase 1:
Sproule, formerly MHA Petroleum (helium reserve independent expert report) and VGI (owner’s engineer with regard to the engineering and procurement phase of the project).

EPCM Bonisana (gas-gathering work), a subsidiary of EPCM Holdings (engineering, procurement and construction contractor – Phase 1 gas gathering pipeline).

Western Shell Cryogenic Equipment (technology and equipment); Babcock (DAF CF 430 trucks); and Volvo (FM440 trucks).

Phase 2:
Saipem (front-end engineering design, or FEED, contract for the development of the downstream LNG and liquid helium processing facilities, including the associated balance of the plant).

EPCM Holdings (FEED contract – Phase 2 gas gathering pipeline).

Sproule (evaluation and certification of reserves, based on the results of the additional data acquisition and the current drilling campaign. This will build on previous work undertaken by MHA Petroleum Consultants, acquired by Sproule in 2019).

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

Rittal
Rittal

Rittal is a world leading provider of top-quality integrated systems for enclosures, power distribution, climate control, IT infrastructure and...

VISIT SHOWROOM 
Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 01 November 2024
Magazine round up | 01 November 2024
1st November 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:0.331 0.417s - 200pq - 2rq
Subscribe Now