Renergen Secures Five-Year LNG Contract, Advances Virginia Gas Project Timeline
Renergen Limited's subsidiary, Tetra4 Proprietary Limited, has secured a five-year take-or-pay contract to supply liquified natural gas (LNG) to a South African food processor at the Virginia Gas Project in Free State Province, South Africa.
The contract represents approximately 10% of the project's Phase 1 nameplate capacity and is priced at greater than $16 /GJ (0.9478 MMBtu) of LNG, at current exchange rates. The deal brings Renergen closer to completing its contracted cash flow for Phase 1 commercial operations, which remain targeted for completion in the third quarter of 2026.
Renergen has now secured take-or-pay contracts to support approximately 75% of the LNG volumes anticipated from Phase 1, with plans to complete contracting for Phase 1 during 3Q 2026. The company is also in discussions with multiple other potential customers and expects to commence recognizing revenues from the project during 2H 2026.