Page 8 - GLNG Week 05 2022

GLNG AFRICA GLNG

Renergen signs LNG supply

deal with Ceramic Industries

PROJECTS & SOUTH Africa’s Renergen announced on Feb- “We are proud to be associated with Ceramic
COMPANIES ruary 3 that it had signed an agreement with Industries and look forward to building a
Ceramic Industries, a subsidiary of Cape Town- long-standing partnership with the company,
based Italtile, on supplies of LNG. aimed at reducing its carbon emissions whilst
In a statement, Renergen said it was set to diversifying energy supply,” he commented.
begin delivering up to 800 gigajoules per day of “This marks our second and final industrial
LNG to Ceramic in the first quarter of 2022. The contract from Phase One,” he added. The com- Renergen said it
five-year term of the supply agreement will begin pany signed its first industrial LNG supply con-
on the date of the first shipment, and the buyer tract for Phase One with Consol Glass, another was set to begin
will have the option to renew the deal for two South African firm, in August of last year.
more five-year periods, it reported. Renergen is leading the Virginia gas project, delivering up to
Renergen went on to say that it had agreed to which encompasses the development of natural
supply Ceramic with LNG from the first stage gas fields near Welkom, Virginia and Theunissen 800 gigajoules
of its LNG plant on certain conditions. On the in Free State. It has been focusing on CNG pro- per day of LNG
one hand, it said, fulfilment of the agreement is duction but will shift to LNG once the first phase
contingent upon the successful commissioning of its gas liquefaction plant comes online. Some to Ceramic in the
of Phase One itself. On the other hand, it said, of the Phase One LNG will go to Renergen’s
Renergen must commission the facilities needed industrial consumers, while some will be sold to first quarter of
to store and supply LNG at the buyer’s site, while a local subsidiary of TotalEnergies (France) for
the buyer must finish connecting its equipment use as long-haul trucking fuel. 2022.
to the Renergen battery limit of the facility at its Meanwhile, the company is also planning to
site. bring the LNG plant’s second stage on stream in
The statement did not reveal the value of the 2023 or later. Phase Two will include a helium
deal. However, it said that Ceramic had agreed unit, as the Virginia fields contain unusually
to buy the LNG at a fixed priced that would rise high volumes of the inert gas. Sproule, an inter-
each year at a rate linked to the consumer price national energy consulting firm, estimates that
index (CPI). these sites may hold as much as 9.74bn cubic
Stefano Marani, the CEO of Renergen, metres of helium, or more than the total proven
expressed satisfaction with the new contract. reserves of North America.™

P8 www. NEWSBASE .com Week 05 04•February•2022