South African domestic natural gas producer, Renergen, is set to host South Africa’s first-ever liquefied natural gas (LNG) auction, according to a press release.
The natural gas for auction will come from Renergen’s Virginia Gas Project, which is located 250 km southwest of Johannesburg. The gas on sale is expected to be of high quality with an average of greater than 95% methane and almost zero higher alkanes, making it a good alternative for liquid fuels.
As a company, Renergen is undergoing major expansion hoping to complete its Phase 1 expansion plans of the Virginia Gas Project and will be producing LNG and helium by 2021. Phase 2 production at the Virginia Gas Project will bolster the 2021 Phase 1 production, providing availability of LNG across all major highways in South Africa, with surplus volume to be made available to the market. Phase 2 is expected to be completed by 2023.
Renergen is the first South African based company to supply LNG, and from the domestic supply as opposed to other imported sources. Furthermore, South Africa is trying to transition to LNG as a less carbon-intensive alternative.