Renergen secures first and only petroleum production right in SA
Renergen Limited announced that it has received a positive environmental authorisation or record of decision (“RoD”) on Tetra4’s Environmental Impact Assessment (“EIA”) by the Petroleum Agency of South Africa (“PASA”) on 29 September 2017, a process which has taken over two years and involved multiple rounds of public participation.
Tetra4 has also announced that it will become the first company to produce Liquefied Natural Gas (“LNG”) in the country and among the first to sell LNG locally, resulting in significant financial savings to the end-user. Gas in liquid form overcomes the challenges of size and weight of vessels to hold the gas as well as the high pressures associated with the gas.
Stefano Marani, CEO of Renergen said, “The EIA approval is ground-breaking for Renergen. We now enjoy the status of not only having the first onshore petroleum production right in the country, but the only one with an environmental authorisation to commence full scale production.
“We are very excited about going into production and unlocking value for shareholders earlier than anticipated. As a result of significant engineering, Tetra4 will now commence construction of natural gas liquefiers early in 2018 with production of Liquefied Natural Gas (LNG) to commence early in 2019.”
South Africa has seen calls for less dependence on coal as a source of energy over the years. Lower use of coal will reduce greenhouse gas emissions and less demand will lessen environmental risk in various industries across the country. By pursuing the production of LNG, Renergen has taken the first step in the development of energy in South Africa.
When producing LNG, the liquefaction of gas allows for condensation of the energy around 625 times its natural state. This form of gas increases the energy density to levels comparable to diesel, implying Tetra4 can now deliver its gas nationally. This ground-breaking initiative will see trucks and buses using LNG, supplied by Tetra4, travel up to 2 000 kilometres compared to the current 500 kilometres, which are now powered by compressed natural gas (CNG).
“Tetra4 is a unique asset with great potential and offers unique opportunities going forward. The asset provides us with first mover advantage and the ability to shape the natural gas landscape in the country,” Marani concluded.