Renergen Completes Pipe Design for S Africa LNG & Helium Project

Johannesburg and Sydney-listed Renergen has completed the pipeline design for the Virginia gas project located in Free State, it said April 17 in a statement.

The completion date of this milestone was April 1 with the tolerance level of seven days either way. “This means that the milestone was achieved eight days behind schedule, which under current conditions is an achievement in itself," Renergen said. "This milestone is not considered to be on the critical path for the final completion date, and therefore the company does not anticipate that missing this milestone will lead to delays in the final project completion given the pipeline is intended to be complete well before the liquefiers are intended to be delivered in South Africa." 

Last year, the company hired China’s Western Shell Cryogenic Equipment, to supply equipment and technology for an LNG and liquid helium plant for the project. Energy infrastructure contractor EPCM has been selected to build a pipeline and manage the interface between the LNG and helium facilities. The project is expected to come online by mid-2021. 

The LNG plant – South Africa’s first commercial one – will use a mixed refrigeration cycle in order to reduce its energy consumption. Renergen operates Tetra4, South Africa’s only onshore production licence, where gas for the Virginia complex will be sourced.

LNG will be sold domestically, while helium will be sold to Germany’s Linde for supply overseas. Earlier this year, Renergen agreed to supply LNG to South Africa’s Bulk Hauliers International Transport.