SOUTH AFRICA – Tetra4, a South African energy firm and Renergen’s subsidiary, has received a US$40million loan facility for its Virginia gas field project.
The loan facility was made by Overseas Private Investment Corporation (Opic), the US government’s development finance institution.
Renergen said that the fund will enable the first phase of development and commercialisation of a 36.4billion standard cubic feet (bcf) natural gas and 0.87bcf helium field in the Free State province.
“The project also includes the construction and operation of a 52km gas gathering pipeline system and a new liquefied natural gas (LNG) and helium liquefaction plant,” the group said.
Renergen chief executive Stefano Marani said Opic’s funding support was a significant recognition of the importance of alternative and cleaner energy sources in the world.
According to Marani said the fund will also facilitate expansion of the project as Opic believes on highly developmental impact of the project.
“We are proud to be playing an important role in advancing the development of alternative energy sources in the country while contributing to its economic development.
“Through Opic’s funding we are well positioned to take the Tetra4 project to the next level and start realising the growth potential of this world-class deposit for the benefit of stakeholders,” Marani said.
According to a report by Business Report, the
The group said that the transaction would fuel approximately 100 trucks, significantly reducing carbon emissions and operator costs and improving vehicle maintenance.
Tetra4 also announced that it had secured an agreement with Black Knight Group for the sale of LNG.
Marani said Tetra4 was proud to be associated with Black Knight as it embarked on its new venture to disrupt the local logistics market using cutting-edge technology and international best practice.
Black Knight has 20 years experience in the fuel industry as a distributor of fuel products across South Africa and the wider SADC region.
In recent years, Black Knight Group has developed a logistics division aimed at providing holistic fuel solutions for clients.
Tetra4 unveiled that the loan would be payable in 12 years with a 30-month grace period.