Page 13 - GLNG Week 29 2020
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GLNG AFRICA GLNG
Renergen launches South Africa’s
first ever LNG auctions
PROJECTS & RENERGEN has launched South Africa’s first highway. Once the second stage begins produc-
COMPANIES ever auction of LNG by opening a bidding con- tion, the partners will expand LNG distribution
test for future LNG production streams from the to retail outlets along all of South Africa’s major
Virginia Gas Project. highways.
The company announced the start of the The South African company said earlier this
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 Virginia it said at the time.
Gas Project, which has been turning out CNG, The new LNG unit at Virginia 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 Virginia 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.
AMERICAS
Okra Energy subsidiary to deliver
LNG to Mexico’s Énestas
PROJECTS & A subsidiary of US-based Okra Energy has though, that the supply agreement was in line
COMPANIES announced plans to deliver LNG to a customer with its efforts to make LNG and gas liquefac-
in Mexico. tion technology more widely available in Latin
According to a company statement, Okra America.
Energy Alabama (USA) has signed an LNG The deal will benefit Énestas, which uses vir-
supply agreement with Énestas Energy & Gas, tual pipelines to deliver gas to industrial parks,
a privately owned Mexican firm. The deal has a transport operators, greenhouses, mines, ther-
term of five years and may be renewed, and Okra mal power plants (TPPs) and other commer-
Energy Alabama (USA) will source the LNG cial users in Mexico. Caio Zapata, the Mexican
from the 100,000 gallon per day (gpd) gas lique- firm’s CEO, said: “This supply contract with
faction plant that it is now building in McIntosh, Okra Energy Alabama will allow us to continue
Alabama, about 45 miles (72 km) away from the [to] improve our distribution capabilities in
port of Mobile. Mexico.”
Presumably Énestas will take delivery of the Okra Energy Alabama has also hailed the
LNG at its recently completed terminal on Mex- agreement, saying it was pleased to be involved
ico’s Gulf coast. The terminal, which is the first in the delivery of cleaner-burning natural gas to
dual LNG/ethane import facility in Mexico, is Mexico. “We’re proud to bring new technologies
outfitted with automated storage facilities and an and enhanced energy sector jobs to Washing-
unloading system that can handle mid-size ves- ton County through our supply contract with
sels with a capacity of up to 22,000 cubic metres. Énestas Energy & Gas, [which shares] our belief
The US company has not revealed the value that access to natural gas is a basic asset for the
of the deal or the volume of LNG it intends to development of any country,” said Mark Clark,
deliver to Énestas. It did say in the statement, the company’s CEO.
Week 29 24•July•2020 www. NEWSBASE .com P13
