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.
Potential Job Creation
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 The projectAugust 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
As a result of significant engineering, Tetra4 will start construction of natural gas liquefiers early in 2018, with production of LNG to start in early 2019.
Latest Developments
The Petroleum Agency of South Africa has granted Renergen’s Tetra4 subsidiary environmental authorisation for its Free State natural gas development.
The authorisation, the processing of which has taken more than two years has involved multiple rounds of public participation.
“The approval is groundbreaking for Renergen. We now enjoy the status of not only having the first onshore petroleum production right in the country but also the only one with an environmental authorisation to commence full-scale production,” Renergen CEO Stefano Marani has noted.
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.