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Renergen Limited, an integrated alternative and renewable energy business listed on the JSE, has announced that it has received a positive environmental authorisation or record of decision (RoD) on Tetra4’s Environmental Impact Assessment (EIA) by the Petroleum Agency of South Africa (PASA). This is the culmination of two years of evaluation, involving multiple rounds of public participation.

This project will further the development of a natural gas resource in the Free State through the creation of a 107 km pipeline network and associated gas processing facilities.

Renergen gets environmental authorisation for further development of natural gas

“The EIA approval is ground-breaking for Renergen. We now enjoy the status of not only having the first onshore petroleum production right in the country, but the only one with an environmental authorisation to commence full scale production,” Stefano Marani, Renergen Chief Executive Officer says.

“We are very excited about going into production and unlocking value for shareholders earlier than anticipated. As a result of significant engineering, Tetra4 will now commence construction of natural gas liquefiers early in 2018 with production of Liquefied Natural Gas (LNG) to commence early in 2019.”

As a result, Tetra4 will become the first company to produce LNG in the South Africa and among the first to sell LNG locally. This will result in significant financial savings to the end-user as gas in liquid form overcomes the challenges of large vessels to hold the gas as well as the high pressures associated with the gas.

“This ground-breaking initiative will see trucks and buses using LNG, supplied by Tetra4, travel up to 2000 km, compared with the current 500 km. For example, the delivery cost of the gas from the gas field to Cape Town, could be reduced by up to 84%. Tetra4 is a unique asset with great potential and offers unique opportunities going forward. The asset provides us with first mover advantage and the ability to shape the natural gas landscape in the country,” Marani says.

When producing LNG, the liquefaction of gas allows for condensation of the energy around 625 times its natural state. This form of gas increases the energy density to levels comparable to diesel.

Tetra4 is currently supplying the Megabus bus fleet and several trucks with compressed natural gas from a recently completed natural gas compression station in Virginia, in the Free State.

Image credithttp://www.renergen.co.za/gallery/

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