South African natural gas and helium producer Renergen has awarded three contracts for the completion of engineering studies of Phase II of its Virginia Gas Project – which targets the increased production of liquified natural gas (LNG) for domestic use and liquid helium for export.
The first front-end engineering design (FEED) contract was awarded to Italian multinational oilfield services company Saipem for the development of LNG and liquid helium processing facilities. The second FEED contract was awarded to EPCM Holdings – global engineering and product development house – for the development of the gas-gathering pipeline associated with Phase II. Awarded toconsulting and advisory firm Sproule, the third contract targets the assessment of available reserves via additional data acquisition and an ongoing exploration campaign.
“This is a significant step forward in the planning of Phase II, as it not only defines the total capital expenditure required but will clearly help define the project’s financial parameters,” said Stefano Marani, Managing Director and CEO, Renergen. “Working with organizations like Saipem, EPCM and Sproule brings a wealth of knowledge, experience and technical capability to the overall project, which we believe will be of great benefit to our stakeholders and the long-term value of the Virginia Gas Project.”
Comprising 187,000 hectares of gas fields across Welkom, Virginia and Theunissen in the Free State, the project accesses one of the richest helium concentrations globally.
Following the conclusion of feasibility studies, Renergen is expected to make its final investment decision on the project in Q2 2021.
Sihle Qekeleshe
Africa Oil & Power