South African domestic natural gas and helium producer Renergen has signed a liquefied natural gas (LNG) supply deal with South Africa’s niche market transport service provider Logico Logistics.
Earlier this year, Renergen signed an agreement with Total South Africa for the joint marketing and distribution of LNG – which will now be transported by Logico – to Total’s service stations along the N3 route between Johannesburg and Durban.
“Dual fuel trucks are undoubtedly the way forward and the ability to implement is on our doorstep. Full gas trucks will become a reality in the medium term when Renergen expands its production and footprint in South Africa and the outlook for green energy is very exciting,” said Clint Brook, Managing Director of Logico.
Renergen is currently developing the Virginia Gas project in the Free State, which will be developed in phases with first production anticipated in 2021. The first phase 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, the company will stop producing compressed natural gas and replace it with LNG as the expects demand for LNG to increase significantly across South Africa. Renergen anticipates that phase 2 of the project will commence in 2023.