Emerging domestic natural gas and helium producer Renergen is pleased to announce that Total South Africa Proprietary Limited (“Total”) and the Company signed an agreement for the joint marketing and distribution of liquefied natural gas (“LNG”) through Total’s service stations.
Renergen is in the construction phase of South Africa’s first commercial LNG plant, and is anticipating a turn-on date of the plant around the third quarter 2021. The customer base for the LNG will predominantly be logistics companies operating trucks along the main routes across the country, with a significant portion of the initial production already allocated to customers. The LNG displaces diesel usage, reducing operating costs and helping customers meet their sustainability targets due to the significantly lower greenhouse gas emissions from natural gas over diesel.
“We are proud to have partnered with a global forward-thinking energy company. Total has a big focus on sustainability and a proven track record in the LNG space, which was clearly an advantage. This agreement is intended to provide ideal filling locations for our customers along strategic routes across the country, and the union will create a powerful first mover advantage in this exciting space in South Africa,” said CEO of Renergen, Stefano Marani.
“It is a proud moment for Total South Africa as it is yet another first for our company. Total is committed to better energy and with this partnership we are taking another step towards providing affordable, reliable and clean energy in line with our Climate Ambition to achieving carbon neutrality by 2050 together with society. We look forward to working together with Renergen to continue making a difference in South Africa,” said Mariam Kane-Garcia, MD of Total South Africa.
The first route targeted under the agreement will be the N3 between Johannesburg and Durban, followed by the corridors leading to the other major cities once Renergen’s Phase 2 project comes into production.
18 June 2020
Authorised by: Stefano Marani
Chief Executive Officer
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To readers reviewing this announcement on the Stock Exchange News Service (SENS), this announcement may contain graphics and/or images which can be found in the PDF version posted on the Company’s website.
To readers reviewing this announcement who wish to find out more about LNG, watch our LNG video, which is posted on the Company’s website https://www.renergen.co.za/videos/
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Renergen is an emerging producer of helium and liquefied natural gas (LNG), with existing production and sales of gas to buses in the Free State. Renergen was listed on Johannesburg’s AltX securities exchange in June 2015 as South Africa’s first listed alternative and renewable energy company. Renergen listed on the Australian Securities Exchange (ASX) on the 6th June 2019, with the code RLT. Renergen’s principal asset is its 100% shareholding in Tetra4, which holds the first and only onshore petroleum production right in South Africa, giving it first mover advantage on distribution of domestic natural gas, along with the potential to become one of the major global helium suppliers, making South Africa only the 8th country in the world to export this extremely rare gas.