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DMEA LNG DMEA

Renergen launches South Africa’s

first ever LNG auctions

SOUTH AFRICA RENERGEN has launched South Africa’s first highway. Once the second stage begins produc-
ever auction of LNG by opening a bidding con- tion, the partners will expand LNG distribution
Renergen is using the test for future LNG production streams from the to retail outlets along all of South Africa’s major
auction to sell surplus Victoria Gas Project. highways.
production from the The company announced the start of the The South African company said earlier this
Victoria gas project. auction on July 20, saying it would accept offers year that it had teamed up with Total to make a
for LNG and helium from its plant until August case for LNG as a more environmentally friendly
28. Potential buyers must demonstrate “an asset fuel for long-haul trucking. “The LNG displaces
value or annual turnover equal to or in excess of diesel usage, reducing operating costs and help-
ZAR2mn [$121.541],” it said in a statement. ing customers meet their sustainability targets
The winners of the auction will take delivery due to the significantly lower greenhouse gas
of LNG and helium from a new gas liquefaction [GHG] emissions from natural gas over diesel,”
unit that is under construction at the Victoria it said at the time.
Gas Project, which has been turning out CNG, The new LNG unit at Victoria Gas Project will
Renergen said. The LNG unit’s first stage is due process natural gas from Renergen’s fields near
to come on stream in 2021, and the second stage Welkom, Virginia and Theunissen in Free State.
will follow suit in 2023, it said. These fields contain nearly 90% methane and
Renergen is using the auction to sell surplus have an unusually high concentration of helium,
production from the Victoria Gas Project. It has according to the company’s web site. Sproule,
already struck a deal with a unit of France’s Total an international energy consulting firm, has
on the distribution of LNG from the first stage estimated that they may hold as much as 9.74bn
for long-haul trucking from filling stations along cubic metres of helium, a quantity that exceeds
the Johannesburg-Durban section of the N3 the total proven reserves of North America. ™

Chevron confirms plan to buy Sasol’s

indirect stake in Escravos GTL plant

NIGERIA THE US major Chevron has confirmed that one He did not divulge the terms of the acquisi-
of its subsidiaries is slated to acquire additional tion. Nevertheless, he did note that the EGTL
The agreement has equity in the Escravos gas-to-liquid (EGTL) project was providing support to the Nigerian
been finalised. plant from South Africa’s Sasol. government’s efforts to reduce the flaring of
Esimaje Brikinn, the general manager of pol- associated gas from oil wells.
icy, government and public affairs for Chevron “The EGTL, together with the Escravos Gas
Nigeria Ltd (CNL), told Vanguard last week that Plant (EGP3), provides a reliable flares-out solu-
his company had finalised an agreement to this tion and remains a critical part of the overall
effect with Sasol Middle East and India (Pty) Ltd, NNPC/CNL joint venture gas commercialisa-
an affiliate of Sasol. The deal provides for CNL to tion strategy,” he said.
buy its partner’s minority stake in Chevron Sasol Equity in the Escravos facility is now split
EGTL, which gives it a 10% stake in the EGTL between CNL, with 80%, and NNPC, with 20%.
facility, he said. The plant is capable of processing around 325mn
“Chevron Nigeria Ltd (CNL), operator of cubic feet (9.203mn cubic metres) per day of
the [EGTL] joint venture between Nigerian associated gas. It turns out 33,000-34,000 bar-
National Petroleum Corp. (NNPC) and CNL, rels per day (bpd) of synthetic fuels, with diesel
confirms that Sasol and Chevron have signed accounting for most of the total.
an agreement that will see Sasol Middle East and Sasol announced plans to unload its indirect
India sell its shares in Chevron Sasol EGTL to stake in the EGTL plant last month as part of a
Chevron,” Brikinn stated. “With the sale of these wider effort to optimise its asset portfolio. At the
shares, Sasol’s indirect interest in the Escravos time, it said it would continue to provide Chev-
gas-to-liquids (EGTL) asset will now be held by ron with support at the facility by supplying tech-
CNL.” nology, technical support and catalysts. ™

Week 29 23•July•2020 www. NEWSBASE .com P17