Stefano Marani, Renergen CEO. Image: The Market Herald
Following the phase-one commissioning of its onshore Virginia Gas Project in South Africa’s Free State province, natural gas and helium producer, Renergen, has concluded a liquefied natural gas (LNG) supply agreement to supply glass manufacturer, Consol Glass, with gas for its operations over the next five years.
Commencing in January next year, pricing of the contract will be tied to the floating LNG price as published by the Department of Mineral Resources and Energy of South Africa.
Renergen has stated that supply volumes will ramp up after a three-month period and will reach a rate of approximately 14 tons per day following the installation and testing of vital supply equipment.
“[The deal] with Consol is one that has created significant excitement in the business,” stated Renergen CEO, Stefano Marani, adding, “It also shows the increasing emphasis that companies are placing on reducing their carbon footprint, and our LNG is the perfect way to do this in an innovative way that gives the end-user greater predictability in their future energy prices.”
The contract marks the first deal for the emerging, South African company that does not involve the supply of gas to trucks to substitute diesel.
“We look forward to nurturing this relationship and can’t wait to engage on Phase 2 in due course,” Concluded Marani.