Gas

Renergen appoints contractors for Virginia gas project’s Phase 2 studies

Renergen appoints contractors for Virginia gas project's Phase 2 studies

27TH JANUARY 2021

BY: SIMONE LIEDTKE
WRITER

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Emerging helium and natural gas company Renergen has appointed three companies for the engineering studies for Phase 2 of its Virginia gas project, in South Africa’s Free State province.

The three companies are Saipem South Africa, EPCM Holdings and Sproule.

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Saipem has been awarded the front-end engineering design (FEED) contract for the development of the downstream liquid natural gas and liquid helium processing facilities, including the associated balance of the plant.

EPCM Holdings is currently building Phase 1’s gas gathering pipeline and has been awarded the FEED contract for the development of Phase 2’s gas gathering pipeline.

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Sproule, meanwhile, will be responsible for evaluating and certifying the reserves based on the results of the additional data acquisition and the current drilling campaign. This will build on previous work carried out by MHA Petroleum Consultants, which was acquired by Sproule in 2019.

The three contracts will culminate in the completion of the feasibility studies for Renergen’s Virginia gas projects’ Phase 2 development and is expected to be completed on or around the second quarter of this year, with a financial investment decision by the board expected to be taken thereafter.

The Virginia gas project boasts significant proven and prospective helium reserves and resources and contains one of the richest helium concentrations recorded globally, with readings of up to 12%.

Phase 1 production is expected to come into operation later this year, with initial volumes of around 350 kg of helium and 2 500 GJ of liquefied natural gas (LNG) a day.

Phase 2 will be a more substantial project and will encompass the design of the facilities that will allow Renergen to produce significantly larger quantities of LNG and liquid helium.

The LNG will be used in South Africa, while the liquid helium will be exported internationally. 

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