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South African helium producer Renergen, a subsidiary of Texas-based advanced materials company ASP Isotopes, expects to begin commercial helium production by 30 September at its Virginia Gas Project in South Africa.
The company drilling for Phase 1 of the Virginia Gas Project four months ahead of schedule, accelerating the helium production timeline.
Phase 1 is expected to produce 70 thousand cubic feet per day (mcf/day) of liquid helium once fully operational.
Following the completion of pipeline tie-ins, the Phase 1 wells achieved the required cumulative flow rate to operate the process plant at its projected nameplate capacity.
Renergen says commissioning and production remain on schedule for the second half of 2026.
The company a five-year take-or-pay contract with an unnamed Asian industrial gases company, at a fixed price of more than $600 per mcf.
The contract represents around 15% of the project’s expected Phase 1 nameplate capacity and will support the start of commercial operations expected in Q3 2026.
After completing Phase 1, the company expects to begin construction of Phase 2 in the second half of 2026 with a projected development timeline of three to four years.
Phase 2 is expected to increase liquid helium production to 900 mcf/day.
After the completion of Phase 1, the company projects combined helium and liquefied natural gas (LNG) revenues to reach around $27m annually.
LNG production at the Virginia Gas Project in September 2022.
