South African domestic natural gas and helium producer Renergen has completed the design of the Virginia gas plant.
The design has been completed 22 days ahead of schedule the company noted in its statement.
This achievement marks the completion of the fourth major milestone at the Virginia gas project, as the company works towards the commencement of production in 2021.
The Virginia gas project will be developed and expanded in phases.
According to Renergen, the first stage of construction will encompass connecting existing wells to a new gas pipeline. The phase will also include the construction of a new helium and LNG plant.
Once the new plant is operational, Renergen will cease its CNG production and replace this with LNG.
The company recently launched South Africa’s first-ever liquefied natural gas auction .
Renergen noted earlier that it will become the first distributor of LNG at filling stations (in partnership with Total) in the country and the only domestic producer of helium.
Renergen anticipates that Phase 2 of the Virginia Gas project will be available by 2023. The company expects demand for LNG to increase significantly across South Africa.
Phase 2 production at the Virginia Gas Project will bolster the 2021 Phase 1 production, providing availability of LNG across all major highways in South Africa, with surplus volume to be made available to the market.