Appointment of Pipeline Construction Contractor
Incorporated in the Republic of South Africa
(Registration number: 2014/195093/06)
JSE Share code: REN
Australian Business Number (ABN): 93 998 352 675
ASX Share code: RLT
(“Renergen” or “the Company”)
APPOINTMENT OF PIPELINE CONSTRUCTION CONTRACTOR
Emerging Liquefied Natural Gas (“LNG”) and helium producer, Renergen, is pleased to
announce a major milestone for the Company with the appointment of EPCM Holdings’
subsidiary EPCM Bonisana (Pty) Ltd (“EPCM”) as the Engineering, Procurement and
Construction (“EPC”) contractor for the Company’s Virginia Gas Project (“Project”).
EPCM will be responsible for building the gas gathering system connecting the gas wells for
the Project. The gas gathering system is a critical component to the Project as it will reticulate
all the gas to a centralised point for processing before the LNG and helium is moved to
The Project will be developed over two phases, the first being the reticulation of the existing
12 wells, along with several new wells to be drilled in the coming months. This will result in the
production of around 2,700 gigajoules of LNG and 350 kilograms of liquid helium per day
starting in 2021.
The second phase is currently being planned and potentially involves the inclusion of the
helium bearing sandstone trap discovered in the eastern side of the Project area. Significant
data has been obtained and is being processed to assist in the planning of the first deviated
well, which will determine the scale of helium production in the second phase. More details
will be available once the technical team has completed its work.
Commenting on the first major milestone for the Company since listing on the ASX in June,
Renergen CEO Stefano Marani said, “We have a longstanding working relationship with
EPCM having worked alongside each other since the very early stages of the Virginia Gas
Project. EPCM were responsible for the completion of the Pre-Feasibility assessment at
Virginia, building the pilot compressed natural gas plant for Tetra4 in 2016 and assisting the
Company with ongoing feasibility and engineering studies. Importantly, EPCM share our goal
of developing Virginia into a globally significant producer of LNG and helium. The helium
market continues to gain widespread attention surrounding supply constrain issues, and we
look forward to working alongside EPCM in advancing the Virginia project towards production,”
Located in Africa, EPCM is a rapidly expanding business, providing engineering, procurement,
fabrication and construction services across the energy, utilities, chemicals and mining
industries. EPCM places a high priority on delivering designing, building, operating and
maintaining safe, well executed, capital-efficient projects, and through this has developed a
global portfolio of clients.
Tom Cowan, CEO of EPCM, said: “We look forward to contributing to the success of the
project during this critical phase and building further on our relationship with Tetra4.”
The pipeline will be constructed predominantly using high-density polyethylene pipe buried
approximately 2 meters below the surface and will bring natural gas from various locations
across the field. The pipeline will include two compression stations which will boost the
pressure along the route, to a centralised point which will allow for the processing of the gas
into the end-product. Importantly, the construction is anticipated to bring much needed
employment to the area and will positively impact local communities through job creation.
7 August 2019
Date: 07/08/2019 09:00:00
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