JSE- and ASX-listed natural gas and helium producer Renergen will, starting in January 2022, shortly after the completion of Phase 1 of its Virginia gas project, supply liquefied natural gas (LNG) to glass manufacturer Consol Glass.
The five-year contract will carry a price linked to the floating liquefied petroleum gas price in South Africa, as published by the Department of Mineral Resources and Energy.
The supply volumes will be ramped up over a three-month period, reaching an estimated volume of 14 t/d within three months from start as the necessary equipment is installed and tested.
This contract marks the first one for Renergen that is not linked to the supply of gas to trucks for the substitution of diesel.
Renergen CEO Stefano Marani enthuses about the “extremely proud moment for the company”.
“Consol is one of those household names you knew from childhood and for a young business like ours to be entering into supply agreements such as these with Consol is one that has created significant excitement in the business,” he says.
The supply agreement is also indicative of the increasing emphasis that companies are placing on reducing their carbon footprint, and Marani notes that Renergen’s LNG “is the perfect way” to do this in an innovative way that gives the end-user greater predictability in terms of future energy prices.
“We look forward to nurturing this relationship and can’t wait to engage on Phase 2 in due course,” Marani concludes.