SOUTH AFRICA – Natural gas and helium producer Renergen (RLT) has penned an agreement for the supply of liquefied natural gas or “LNG” to Consol Glass, starting in January 2022.
The agreement is set to take effect shortly after phase-one commissioning of the Virginia Gas Project in South Africa.
The five-year contract will reportedly carry a price linked to the floating liquified petroleum gas price in South Africa, as published by the Department of Mineral Resources and Energy.
According to RLT, supply volumes will be ramped up over a three-month period to reach an approximate volume of 14 tonnes per day as necessary equipment is installed and tested.
Renergen CEO Stefano Marani said the contract marked the company’s first that wasn’t linked to the supply of gas to trucks as a substitution for diesel.
“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 said.
The supply agreement is also indicative of the increasing emphasis that companies are placing on reducing their carbon footprint, and Marani noted 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.
“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.”
Mr. Marani said the company looked forward to engaging in phase two in due course.
“We look forward to nurturing this relationship and can’t wait to engage on Phase 2 in due course,” Marani concluded.
“
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”
Stefano Marani – CEO, Renergen
In June 2021, Renergen announced that it is branching out into cold storage solutions for covid vaccine transportation.
The company’s Cryo-Vacc innovations have the potential to make a contribution to the company’s bottom line, the CEO told The Africa Report.
“While it’s too early to judge how much Cryo-Vacc can add to profit, the patented invention “has the potential to be quite material in the near future,” Marani said in Johannesburg.
Renergen, which trades on the Johannesburg stock exchange and in Australia, holds the only onshore petroleum production right in South Africa, giving it a first-mover advantage in the distribution of domestic natural gas.
Its Virginia gas project is located in the Free State, about 250 km southwest of Johannesburg.
The fact that liquid natural gas (LNG) needs to be stored at -162°C makes cold storage vaccine solutions a logical progression for the company.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE
