With registrations completed, the emerging natural gas producer says allocations will be made following the end of the bid process in October.
Renergen says interest in the country’s first auction of liquefied natural gas (LNG) significantly beat expectations, demonstrating the inherent demand for alternative energy supplies.
The emerging natural gas and helium producer announced the auction in July as it prepares to tap into what it believes is a significant gas resources and one of the richest helium concentrations globally. It invited bids for the allocation of LNG, which will be produced from the Virginia Gas Project in the Free State. Renergen owns Tetra4, the holder of the only onshore petroleum production right in SA
It expects to produce LNG of outstanding purity with an average of greater than 95% methane and almost zero higher alkanes. This would make its product an ideal substitute for liquid fuels as it would burn cleaner and release fewer emissions. It is also partnering with French energy giant Total to become the first distributor of LNG at filling stations in the country.
Interested parties had until the close of business last Friday to register interest in participating in the auction. It said respondents were now finalising non-disclosure agreements, which will enable information sharing to commence and ascertain any specific site-requirements allowing for the switch from other fuels to LNG. Bidders will then have until the end of October to submit their offers for LNG, after which Renergen will assess all bids and allocate accordingly.We expected some interest but certainly not the level received, with significantly more companies involved in the auction process than we had forecasted,” CEO Stefano Marani said. “Many companies in South Africa have their own procurement departments dealing in energy and an auction such as this would never feature in their operational processes, however we were pleasantly surprised to be proved wrong.”
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