Although much of the energy market is looking at how to pivot toward renewable and sustainable energy models, fossil fuels are still present and dominant in the global energy market and natural gas is one of the most important in growing markets.
At the upcoming African Energy Week (AEW), Renergen, South Africa’s first and sole producer of liquid natural gas (LNG), following the start-up of its onshore gas liquefaction plant, is set to speak about the new natural gas potential of the country. According to a recent release, Renergen CEO, Stefano Marani, has joined the speaking faculty for the event taking place October 16 to 20 in Cape Town, South Africa.
The African Energy Chamber (AEC), is the sponsor of the AEW conference and exhibition, and the organizers stated in the release that Renergen’s leadership in the use of natural gas in heavy-duty vehicles, which pushed South Africa’s transport sector closer to carbon neutral, and with the substantial gas reserves in the country’s Free State Province, the company has shown that natural gas production can be a safer and cleaner economic driver and that the country is positioned well to be a leader in the industry.
Under his leadership, Marani has taken the company’s acquired gas fields from a stranded asset into production and put a spotlight on the need for South Africa to leverage its natural gas resources to promote a less carbon-intensive substitute for the country’s existing transport, thermal and power generation fuels.
South Africa faces a major energy deficit that limits economic and infrastructural growth in the country in addition to making it difficult for the nation to lead in the African Union. These new sources of fuel for thermal power plants represent the potential for South Africa to stop its cycle of rolling blackouts and power shortages. Renergen is operating three conventional gas fields in the Free State at Theunissen, Virginia and Welkom, and combined they are estimated to contain up to 407 billion cubic feet of conventional natural gas. Now that the LNG plant is operational, the company hopes to convert these conventional reserves into a larger scale liquefied natural gas (LNG) project.
According to the company’s reports, the plant, completed in 2022, will reduce the country’s overall carbon footprint, improve power stability and supply, and advance the Free State Province as a hub for energy production.
“Renergen’s considerable efforts towards driving and monetizing natural gas resources should serve as a clear message to investors that the upstream oil and gas industry is open for business in South Africa,” said NJ Ayuk, Executive Chairman, AEC. “Gas will help South Africa find ways to produce the additional electricity it needs to provide all of its citizens with reliable and secure power.”
Renergen reports interest from several large-scale industrial manufacturers, heavy logistics operators, and independent power producers, and is set to expand its operations over the next few years through its second Phase of the Virginia gas project, projected to produce about 680 tons per day of LNG and up to one million standard cubic feet per day of liquid helium.
AEW 2023 will unite energy stakeholders, global investors, and executives from across the public and private sector for a week of interactive conferences, exhibitions, panel discussions, investor forums, industry summits, and one-on-one meeting opportunities to drive African industry growth and development.
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