Natural gas and helium producer Renergen has concluded a liquefied natural gas (LNG) supply agreement with Italtile subsidiary Ceramic Industries.
Supply will start in the first quarter of this year, from Phase 1 operations at Renergen’s Virginia gas plant, in the Free State.
The Phase 1 agreement spans five years from the date of start of supply and will see the company supply up to 800 GJ of LNG a day at a fixed price, with yearly escalation linked to the consumer price index.
The agreement will also include two further five-year renewal periods at the customer’s discretion.
The agreement is subject to several conditions, such as the successful commissioning of Renergen’s Phase 1 operations, and the company commissioning duly permitted facilities to store and supply LNG at the customer’s site.
In addition, the customer will be expected to have completed the connection of its equipment to the Renergen battery limit of the facility at its site.
“We are proud to be associated with Ceramic Industries and look forward to building a longstanding partnership with the company, aimed at reducing its carbon emissions whilst diversifying energy supply,” enthuses Renergen CEO Stefano Marani.
The agreement marks the company’s second and final industrial contract from Phase 1.