IDC gives Renergen loan for natural gas project in Free State
CEO Stefano Marani says pipeline construction will begin before the end of 2017 and, pending approvals, be in operation in June 2018
Junior energy company Renergen has secured an eight-year, R218m loan from the Industrial Development Corporation (IDC) to help fund a 107km pipeline and associated installations for its Tetra4 natural gas project near Virginia in the Free State. The IDC’s decision to grant the loan was in line with its strategy of supporting gas as a cleaner energy source, said Hilton Lazarus, the IDC’s head of base and speciality chemicals. Renergen CEO Stefano Marani said on Wednesday that the company would decide in due course whether the equity component of the loan would take the form of mezzanine capital or a share issue. It would depend on what was in the best interests of shareholders. Lazarus said the IDC would consider taking shares in Renergen in future. Conditions to the loan include completion of an environmental impact assessment, a final review of the geology and an equity contribution from Renergen. The environmental impact assessment had been completed without objections and was wai...