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Renergen's Virginia Gas Project in the Free State has begun operating, transitioning the company from an explorer to a producer of liquid hydrocarbons.
Through commencement of operations, Virginia becomes South Africa’s first commercial liquified natural gas (LNG) plant, with helium production to follow as the project ramps up.
Renergen on Monday announced it has beneficial use of the system and has commenced filling of bulk storage tanks to begin delivery of product to customers.
Renergen will now focus on ramping-up operations over the coming months to full Phase 1 capacity which will assist its commercial customers to substitute diesel in trucks for gas, reducing their carbon footprint.
"This watershed moment in the company’s lifecycle has finally arrived. This is a significant step on the path to showing the world that Renergen can become a global player in liquid helium supply and a material local supplier of much needed LNG," said Renergen CEO Stefano Marani.
"Virginia is a world-class project, and we will now focus on ramping-up operations to full Phase 1 capacity over the coming months."
The project has a life expectancy of 20 years.