Renergen strikes deal with auto supplier

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Renergen strikes deal with auto supplier

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Published Date: 2021-04-13 | Source: Stephen Gunnion | Author: Stephen Gunnion

Renergen strikes deal with auto supplier

The emerging helium and natural gas producer will supply helium to inflate car airbags.

Renergen has reached a sales agreement with a global automotive supplier in what it says is its first "Direct-to-Customer" helium deal.

The emerging helium and natural gas producer said for reasons of confidentiality it was unable to disclose the customer or the details of the sales agreement. It said the transaction would see a substantial volume of helium from Phase 2 of its Virginia Gas Project in the Free State placed directly to the customer, underpinning the development.

Renergen owns Tetra4, the holder of the only onshore petroleum production right in SA, with proven methane reserves and what Renergen believes is arguably one of the highest concentrations of helium. Helium is used as a coolant in MRI scanners and can also be used to detect leaks in car air-conditioning systems and for inflating car airbags.

CEO Stefano Marani said the contract showed the viability of accessing helium directly from the refinery by customers and Renergen diversifying its customer base beyond wholesalers.

Earlier this month, Renergen said it had completed the fifth major milestone at the project on time, including the shipment of essential equipment from China to SA. The equipment includes LNG/LHe (liquefied natural gas/liquid helium) process plant compressor modules and LNG bulk storage tanks, amongst other items.

Its shares rose 3.7% to R28 yesterday.





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