Page 9 - GLNG Week 42 2021

GLNG COMMENTARY GLNG

will use this gas as feedstock for an LNG plant, of our contract, we believe this transaction is
which is currently under construction. a ground-breaking step in bringing helium to
Once the gas liquefaction plant comes on the financial markets and will pave the way for
line, the company will halt production of CNG its inclusion into more mainstream commodi-
and switch to LNG. It has already arranged to ties,” he was quoted as saying in Renergen’s press
work with a unit of France’s TotalEnergies to sell release. “Like with so many other commodities,
its LNG as a fuel for long-haul trucking. Total it will start small and is likely to be traded by
will use its filling stations along the Johannes- those who have researched it and understand
burg-Durban section of the N3 highway to dis- the future potential with emerging technologies
tribute LNG from the first phase of Renergen’s such as quantum computing and in time, may
plant. become much more mainstream in [a] similar
The second stage of the LNG plant will then way [to what] lithium did several years ago.”
begin production in 2023. Part of the produc- Charles Savage, the CEO of Purple Group
tion from the second stage will be distributed Ltd, also touted the financial and technological
by Total’s retail outlets along all of South Africa’s potential of helium trading. “We see a future
major highways, and the remaining volumes where the use of blockchain to manage assets Once the gas
will be sold to other buyers. at low cost and in a transparent way becomes
Renergen’s LNG plant will also include a mainstream. This is what we do at EasyCrypto, liquefaction plant
helium unit. Sproule, an international energy and it was a no-brainer when our long-time comes online,
consulting firm, estimates that these sites may friends at Renergen asked us to get involved.
hold as much as 9.74bn cubic metres of helium, Applying it to a resource base, we believe, is a the company will
or more than the total proven reserves of North very innovative approach and look forward to
America. this journey,” Savage said halt production of
Meanwhile, Stefano Marani, the CEO of
Global helium demand Renergen, described the deal with Argonon as CNG and switch
These reserves put the company in a position important to his company’s future. “Helium to LNG.
to help meet global demand, which currently is a rare element without substitutes and the
amounts to 6bn cubic feet per year, according to importance and critical role it plays across
estimates from Edison Group and Hannam and several high-growth sectors – including med-
Partners. This is equivalent to 6mn of the units ical imagery (MRIs), welding, fibre optics and
referenced in the deal with Argonon. electronics – is leading to a growing global
Renergen’s contract would cover only a shortfall of helium supply and rising prices,” he
small amount of these volumes, but it has commented. “Through the development of its
great potential to help develop the market, world-class, high-grade, Virginia gas project,
according to Richard Charrington, the CEO Renergen is in a strong position to supply this
of Argonon. “Whilst 100,000 units is less than growing market and continue to create long-
0.1% of the global helium market over the term term value for all our stakeholders.”™

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