Page 8 - GLNG Week 13 2022

GLNG AFRICA GLNG

Renergen will use the
proceeds of this sale to
fund the second phase
of the Virginia gas
project.

Renergen to sell 10% of Tetra4 subsidiary

to South Africa’s Central Energy Fund

INVESTMENT SOUTH Africa’s Renergen revealed on March equity. Under this deal, the Canadian firm will
28 that it had arranged to sell a 10% stake in its also have the right to nominate one director to
Tetra4 subsidiary, which serves as the operator Renergen’s board and acquire up to 25% of that
of the Virginia natural gas project, to the state- company’s shares through subscription (and at
owned Central Energy Fund (CEF). a slightly discounted price) in consideration for
In a statement, Renergen explained that it cash or its own equity.
had signed a non-binding term sheet with CEF Additionally, Ivanhoe will be able to acquire
on the deal. The document notes that CEF has another 55% of Renergen’s shares through a sec-
agreed to pay the equivalent of about $69mn ond subscription (again, at a slightly discounted
for the stake but also stipulates that Renergen price) for close to $250mn. The South African It has been using
has the right to renegotiate the price following company will use the proceeds of this sale to
completion of the transaction. It also gives the fund the second phase of the Virginia gas project. gas from these
parties 141 days to execute binding agreements Renergen aims to launch the first phase of this
on the sale. project, which encompasses the development of fields to produce
The South African company said it had natural gas fields near Welkom, Virginia and
agreed to work with the state-controlled entity Theunissen in Free State, in April 2022. It has CNG but is
in order to move ahead to the second stage of the been using gas from these fields to produce CNG preparing to shift
Virginia gas project. It also noted that negotia- but is preparing to shift to LNG once the first
tions with CEF had come shortly on the heels of phase of its gas liquefaction plant comes online. to LNG once the
an announcement of Renergen’s strategic part- Renergen will send some of the Phase One LNG
nership deal with Canada’s Ivanhoe Mines. to its industrial consumers and some to a local first phase of its
Stefano Marani, Renergen’s CEO, stressed subsidiary of TotalEnergies (France) for use as
this point, saying: “To sign CEF and Ivanhoe long-haul trucking fuel. gas liquefaction
Mines in the space of two weeks as major inves- The company aims to bring the LNG plant’s plant comes
tors and strategic partners highlights the signifi- second stage on stream in 2023 or later. Phase
cant growth of the company and the critical role Two will include a helium unit, as the Virginia online.
Virginia will play in the future supply of clean fields contain unusually high volumes of the
energy as well as in-demand helium.” inert gas. Sproule, an international energy
Ivanhoe announced the partnership earlier consulting firm, estimates that these sites
this month, saying that it had made an initial may hold as much as 9.74bn cubic metres of
equity investment of around $13mn in the South helium, or more than the total proven reserves
African firm in exchange for about 4.35% of its of North America.™

P8 www. NEWSBASE .com Week 13 01•April•2022