Virginia Gas Project, South Africa. 3 contracts awarded for Phase II engineering studies

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Renergen, an emerging integrated renewable energy producer, delivering superior and sustainable helium and domestic natural gas, has appointed three companies to carry out the engineering studies for the second phase of its Virginia gas project, located in South Africa’s Free State province.

The three companies in question are 1. Saipem South Africa, a subsidiary of Saipem S.p.A, the Italian multinational oilfield services company; 2. South Africa’s EPCM Holdings company that specializes in the design and construction of pipelines and storage facilities for the oil and gas industry; and 3. Sproule, a leading consulting firm headquartered in North America that provides deep technical expertise and commercial insights.

The mandate of each of the above-mentioned companies as per the contracts

Saipem South Africa has been awarded the front-end engineering design (FEED) contract for the development of the downstream liquid natural gas and liquid helium processing facilities. It will also design the gas purification section, storage equipment, unloading, associated services, and the liquefaction section with its exclusive LiqueflexTM-N2 technology.

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On the other hand, EPCM Holdings which is currently building Phase 1’s gas gathering pipeline, has been awarded the FEED contract for the development of the same infrastructure (gas gathering pipeline) in the second phase.

Lastly, Sproule will be responsible for evaluating and certifying the reserves based on the results of the additional data acquisition and the current drilling campaign. This will build on previous work undertaken by MHA Petroleum Consultants, which was acquired by Sproule back in 2019.

According to the emerging integrated renewable energy producer, the three contracts will eventually help in wrapping up the feasibility studies for phase 2 of the Virginia gas project. The studies are expected to be completed on or around the second quarter of this year with the company looking to make a financial investment decision thereafter.