(Ecofin Agency) - Afrox, Linde Group, Renergen Limited, and its subsidiary TETRA 4 (Pty) Limited have entered into what is termed as an historic deal for the commercialization of the Helium and Natural Gas field in South Africa.

The 187 000 hectare field in Virginia, near Welkom, contains proven reserves of 25 Bcf of natural gas and helium, and is the first and only onshore petroleum right in South Africa capable of supplying helium to several specialized and industrial markets.

Under this contract, Renergen will provide Linde with Helium reserves through an offtake contract, with the German corporation’s Global Helium unit.

Linde’s Engineering Division will deliver the processing plant, which is to be designed and manufactured in Europe before it is shipped to South Africa. The plant will have a single system original extraction technology which will separates the Helium from the Natural Gas and afterwards purifies, compresses, liquefies and stores it ready for distribution.

Meanwhile, Afrox will operate the plant and market the Helium.

The Project is scheduled to commence operations in 2018. “Linde has worked diligently to develop this unique He resource together with Renergen and looks forward to receiving Helium upon commencement of plant operations. Along with our Helium sources in US, Qatar, Australia and Algeria, this supply agreement re-confirms Linde’s position as the supplier with access to the most diversified Helium source portfolio,” Nick Haines, Head of Global Source Development, Global Helium and Rare Gases at Linde, told Gas World.

According to Renergen’s Chief Executive Stefano Marani, the plant would cost at least Euro12 million. He said the production of helium will diversify South Africa’s energy mix and improve access to energy “as we know, access to energy is a catalyst for economic growth.”

Anita Fatunji