Emerging South African helium and liquefied natural gas (LNG) producer Renergen has announced substantial interest in its liquefied natural gas (LNG) auction, the first of its kind to be launched in South Africa.
The auction invites bidders to apply for allocation of gas that will be produced through Renergen’s Virigina Gas project in the Free State.
“We expected some interest but certainly not the level received, with significantly more companies involved in the auction process than we had forecasted,” said Renergen CEO Stefano Marani.
Following an August 28 deadline to register participation, interested parties are currently signing non-disclosure agreements, which will enable the sharing of information and any site-specific requirements for the purchase and use of LNG supplied by Renergen.
Once this process is complete, bidders will then have until October 31 to submit their bids.
Following completion of the Phase 1 expansion plans of its Virginia Gas project – which the company aims to complete by 2021 – Renergen will become the first distributor of LNG at filling stations in South Africa, in partnership with Total, and the only domestic producer of helium.
By 2023, the company plans to complete Phase 2 of the project, which will boost supply produced in Phase 1, providing LNG across all major highways in South Africa and selling the excess to regional and international markets.