Natural gas and helium producer Renergen has concluded a liquefied natural gas (LNG) agreement to supply Consol Glass operations with gas over the next five years.
The supply will start in January 2022 shortly after the commissioning of phase 1 of Renergen’s Virginia Gas Project, in which LNG and helium will be produced from the Free State site.
The supply volumes will reach about 14 tonnes a day within three months from commencement as the necessary equipment is installed and tested.
Renergen said the contract carries a price that will be linked to the floating LPG price in SA, as published by the department of mineral resources & energy. The contract is the first one for the company that is not linked to the supply of gas to trucks for the substitution of diesel.
“For a young business like ours to be entering into supply agreements such as these with Consol is one that has created significant excitement in the business,” said Renergen CEO Stefano Marani.
“It also shows the increasing emphasis that companies are placing on reducing their carbon footprint, and our LNG is the perfect way to do this in an innovative way which gives the end user greater predictability in their future energy prices.”
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