Renergen plans to raise equity to ramp up South Africa’s first LNG project

By David Whitehouse
Posted on Monday, 19 September 2022 06:00

Stefano Marani, CEO of Renergen, speaks during the media launch of Renergen's working prototype cold-chain storage called Cryo-Vacc, in Johannesburg
Stefano Marani, CEO of Renergen. REUTERS/Sumaya Hisham

South Africa’s Renergen plans to raise equity to move into second phase production at its Virginia natural gas and helium project, CEO Stefano Marani tells The Africa Report.

Between $150m and $200m in equity will be needed to take production into its second phase, Marani says. Renergen switched on the project, South Africa’s first commercial liquefied natural gas (LNG) plant, this month.

The Virginia project is in the Free State, about 250km southwest of Pretoria. In June, Renergen signed a retainer letter with the US International Development Finance Corporation to evaluate making a loan of up to $500m for the second phase. According to research by Hannam & Partners, phase two will cost about $900m. The project is also being backed by South Africa’s state-owned Central Energy Fund, which is investing R1bn ($57m).