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Tender Opportunity - Virginia Gas Project

Location The project spans 187 000 ha of gasfields across Welkom, Virginia and Theunissen, in the Free State, in South Africa. Project Owner/s Tetra4, a subsidiary of Renergen. Project Description The project entails the construction of a 52 km gas-gathering pipeline and cryogenic liquefaction processing facilities. The aim is to produce all South Africa’s helium requirements and potentially export the balance of production, as well as produce the first liquefied natural gas (LNG) locally available for commercial consumption. Phase 1 aims to produce 350 kg/d of helium. Output will be increased to up to 10 000 kg/d of helium in Phase 2, “arguably making it amongst the biggest helium projects on the planet", CEO Stefano Marani has said. This will result in 0.7-billion cubic feet (bcf), which over 19 years amounts to 13.87 bcf out of 344 bcf, or 4%, of the prospective resource. Renergen is also in the construction phase of South Africa’s first commercial LNG plant. Phase 1 of the project will produce about 50 t/d of LNG, which is about 75 000 l /d of diesel equivalent. Phase 2 will potentially increase this to the LNG equivalent of about 300 000 l/d of diesel. Phase 2 allocations will likely result in the project’s transforming into a significant LNG production facility, placing the project more in line with global production capabilities. Phase 2 is intended to be completed by late 2023, by which time more than 150 wells would have been added. Potential Job Creation Despite the project’s size relative to traditional mining operations, it will create an estimated 360 temporary jobs during development and construction, and an estimated 82 permanent jobs once all the clusters have been developed. Capital Expenditure The total projected capital expenditure to roll out the first phase of production is estimated at R750-million, which includes the cryogenic liquefiers. Planned Start /End Date Phase 1 of the Virginia project is expected to start producing LNG and liquid helium by 2021. Phase 2 is expected to complete construction in 2023 or 2024.

Key Contracts and Suppliers Sproule (formerly MHA Petroleum – helium reserve independent expert report) and VGI (owner’s engineer with regard to the engineering and procurement phase of the project). EPCM Bonisana (gas gathering work), a subsidiary of EPCM Holdings (EPC contractor). Western Shell Cryogenic Equipment (technology and equipment), and Bohrmeister Technik (Phase 1 – drilling contract). Contact Details for Project Information Renergen, tel +27 10 045 6000, email or

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