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Phase 2 Virginia Gas Project Studies Underway
RENERGEN LIMITED
Incorporated in the Republic of South Africa
(Registration number: 2014/195093/06)
JSE Share code: REN
A2X Share code: REN
ISIN: ZAE000202610
LEI: 378900B1512179F35A69
Australian Business Number (ABN): 93 998 352 675
ASX Share code: RLT
(“Renergen” or “the Company”)
PHASE 2 VIRGINIA GAS PROJECT STUDIES UNDERWAY
Emerging helium and natural gas company Renergen Limited is pleased to announce that it has
contracted with three companies for the engineering studies of Phase 2 of the Virginia Gas Project
(“Virginia” or “Project”), located in Free State, South Africa:
• Saipem SpA (“Saipem”) is a global solution provider in engineering, drilling and
construction of major projects in the energy and infrastructure sectors, has been awarded
the Front-End Engineering Design (“FEED”) contract for the development of the
downstream (liquid natural gas and liquid helium processing facilities including the
associated balance of plant);
• EPCM Holdings (“EPCM”) is a global engineering, procurement and construction
company, and is currently constructing Renergen’s Phase 1 gas gathering pipeline, has
been awarded the FEED contract for the development of Renergen’s Phase 2 gas
gathering pipeline; and
• Sproule is a leading independent consulting and advisory firm, which has been awarded
the contract to evaluate and certify the reserves based on results of the additional data
acquisition and the current drilling campaign. This will build on previous work carried out
by MHA Petroleum Consultants, acquired by Sproule in 2019.
The three contracts will culminate in the completion of the feasibility studies for Renergen’s
Virginia Gas projects’ phase 2 development and is expected to be completed on or around the
2nd quarter 2021 with a Financial Investment Decision by the Board expected to be taken
thereafter. The Virginia Gas Project boasts significant Proven and Prospective helium Reserves
and Resources. Importantly, the Virginia Gas Project contains one of the richest helium
concentrations recorded globally, with readings of up to 12%.
Phase 1 of production is expected to come into operation later this year, with initial volumes of
around 350kg of helium and 2,500GJ of liquefied natural gas (LNG) per day.
Phase 2 will be a significantly more substantial project. The project encompasses the design of
the facilities that will allow Renergen to produce significantly larger quantities of LNG and liquid
helium. LNG will be used in South Africa, providing a competitive and cleaner energy source to
the country, whilst liquid helium will be exported internationally.
Stefano Marani said, “This is a significant step forward in the planning of Phase 2, as it not only
defines the total capital expenditure required but will clearly help define the project’s financial
parameters. Working with organisations 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.”
Eric Zielinski, Upstream & LNG Product Manager of XSIGHT, the Division of Saipem dedicated
to engineering phases such as conceptual and front-end engineering to which the FEED contract
has been assigned, said, “Through this contract Saipem extends its presence in South Africa and
is involved in an exciting, world-class development project. The FEED contract specifications for
Virginia Gas Project fully fits within our strategy of diversification providing innovative ideas for
the new energy movement, enabling carbon footprint reductions, and helping to produce a rare
and valuable commodity such as helium. The technologies developed by Saipem for small to mid-
scale natural gas liquefaction plants fully fit for this application, thanks to their flexibility and
robustness.”
Tom Cowan, Managing Director of EPCM said “EPCM looks forward to our continued partnership
with Renergen to further develop the Virginia Gas Project. Having been involved since the very
early stages of the development, we are proud of the progress thus far and are optimistic for what
is to come from Phase 2.
We are excited by the opportunities and economic growth that this project and the introduction of
LNG will bring to the local South African market.”
Jeff Aldrich, Sr. Geoscientist at Sproule said “Sproule appreciates the opportunity to continue our
long-standing relationship with Renergen by providing expert third party reserve and resource
evaluations of the helium and methane resources of the Virginia Gas Project. We look forward to
incorporating the new data into the existing models to advance this project along its milestones.”
Johannesburg
27 January 2021
Authorised by: Stefano Marani
Chief Executive Officer
Designated Advisor
PSG Capital
For South African investor inquiries, contact Renergen
info@renergen.co.za
+2710 045 6007
For Australian Investors & Media, contact Citadel-MAGNUS
Cameron Gilenko
0466 984 953
www.renergen.co.za
Date: 27-01-2021 08:30:00
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