South Africa's Renergen Holds Tender for LNG Supplies

South Africa's Renergen announced on July 20 the launch of the country's first auction for LNG supplies, from a production plant it aims to complete next year.

The Virginia gas project, 250 km southwest of Johannesburg, will produce both LNG and helium, using gas from local fields. The main customer base for the LNG is expected to be logistics companies operating trucks along the country's main highways.

In February, Renergen agreed to supply LNG to South Africa's Bulk Hauliers International Transport. And in June, Renergen signed a deal with France's Total on joint marketing and distribution of LNG at filling stations.

LNG offers a clean energy source for transportation, power generation and industrial use, Renergen said. Companies that want to take part in the auction will have to sign a mutual confidentiality agreement, so that all details relating to the auction remain confidential. The identity of the winners will only be revealed if there is a mutual agreement.