Tetra4 to become first South African LNG producer

ALTERNATIVE and renewable energy firm Renergen says that its gas production subsidiary Tetra4 is to be the first LNG producer and seller in South Africa.

Tetra4 has now received environmental authorisation from the Petroleum Agency of South Africa (PASA) following submission of its environmental impact assessment for its gas assets in Free State. The process has taken over two years but Tetra4 will now be able to begin full-scale operations. The company has 13 operational wells and produces helium alongside natural gas.

Stefano Marani, CEO of Renergen said that Tetra4 would start construction of the natural gas liquefiers early in 2018, and expects to start LNG production in early 2019. Up to now, Tetra4 has only produced compressed natural gas, largely for local buses.

“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,” said Marani. “We are very excited about going into production and unlocking value for shareholders earlier than anticipated.”

The company says full-scale production of natural gas, and LNG production, will be the “first step in the development of energy in South Africa”, as the country seeks to begin reducing its reliance on coal.