Renergen has secured funding of R218m ($16.72m) from South Africa’s state-owned Industrial Development Corporation (IDC) for the construction of pipeline and related installations.
The eight-year funding will also be used to construct compression station and the power and steam plant at Renergen’s subsidiary Tetra4’s Virginia Project.
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Tetra4 has already submitted the environmental impact assessment (EIA) for the construction of the pipeline at Virginia.
The commencement of the development is subject to the final record of decision.
Renergen CEO Stefano Marani said: “We’re on track to develop the exciting growth potential of our Virginia Project at Tetra4 and welcome this important funding support from the IDC as we proceed to full production.”
IDC basic and specialty chemicals SBU head Hilton Lazarus said: “The funding of Tetra4 is in line with the IDC’s strategy to promote gas usage in the country, particularly through the exploitation of indigenous gas resources.
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By GlobalData“The project will also help create new jobs in an area with high unemployment.”
Earlier this month, Renergen entered a partnership with The Linde Group to commercialise the 187,000 hectares helium and natural gas field of Tetra4 in Virginia.
Tetra4, a natural gas and liquefied helium company in South Africa, holds a production right that is valid for another 25 years.
The company also has three onshore petroleum exploration rights in South Africa.
