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South African helium developer Renergen, through its subsidiary Tetra4, has entered the commissioning stage of Phase 1 at its Virginia Gas Project in South Africa, bringing the company closer to commercial helium production.
The company expects to ship its to customers during September, supplying a new source of helium amid global supply chain instability.
Renergen said it will ramp up helium production to Phase 1’s projected nameplate capacity of 70 thousand cubic feet per day (mcf/day) during the second half of 2026.
It recently a five-year take-or-pay contract with an unnamed Asian industrial gases company, at a fixed price of more than $600 per mcf.
To date, the company has signed take-or-pay contracts with customers for approximately 15% of Phase 1 liquid helium and 75% of Phase 1 liquefied natural gas (LNG). Tetra4 has been producing LNG since September 2022.
The company expects to begin construction of Phase 2 during the second half of the year, with a projected development timeline of three to four years.
The expansion is expected to increase liquid helium production to 900 mcf/day.
After the completion of Phase 1, the company projects annualised combined helium and LNG revenues of more than $27m.
