Virginia Gas Field Development – Micro-Scale LNG/Liquid Helium Plant

Appointment of Engineering Consultants & EPC Contractors (full turnkey solution) for the development of a 50 TPD LNG & Liquid Helium Plant

Tetra4 (Pty) Ltd, a subsidiary of Renergen (Pty) Ltd, has reserved the rights to develop the Virginia Gas Field located near the town of Virginia, approximately 320 km south of Johannesburg in the Free State province of South Africa.

Tetra4 approached EPCM in 2014 to assist with conducting the initial concept and feasibility studies for the development of the low-pressure gas field. Initial finance was raised based on the proposed conceptual study which generated fees for the FEED. EPCM conducted the FEED study for the gas gathering network (60 km low-pressure gas flowlines and compressor stations) and the LNG + liquid helium (LHe) plant.

Various hurdles were overcome during the Feasibility and pre-FEED in cooperation with Tetra4 in order to get the project to FID. Initially, the process equipment capital expenditures and operating costs did not make the project financially viable. EPCM then took the liberty of doing a due diligence at risk where the team went to go and visit various micro-scale LNG plant suppliers / manufacturers in China, Europe and the US. After visiting vendor factories, liaising with and negotiating with various suppliers, the EPCM team managed to get the facility’s cost estimates down to a feasible project reaching FID.

EPCM was appointed as the EPC contractor and completed the design and construction for the initial pilot phase (CNG station) where after EPCM was awarded the EPC contractor for the gas gathering network and the LNG/LHe plant.

Below is a technical description of the project facilities.

Pilot Phase: development of CNG station for vehicle use;

• Detailed design and construction of mother station (compressor station with fuelling facilities);
• Construction of daughter station with vehicle fuelling facilities;
• Conversion of 10 Mega Busses to CNG;
• Market assessment and customer identifications & engagements.

Phase I: Compressed Natural Gas Station and Vehicle Conversions

• 9 exploration wells;
• 3 mmscfd production capacity;
• Gas processing facilities;

Scope of Work

• Bankable feasibility study for Small-Scale LNG/CNG and Liquid Helium Plant;
• Business case development on natural gas vehicle conversions;
• Construction of gas production well and CNG station;
• Owners Engineering (land owner negotiations, key authority permits approvals, EIA consultants’ management, Geotechnical Consultant’s management, scope of work compilations for tender documents of EPC contractors for Phase I and Phase II);
• Project feasibility study (market identification and development, infrastructure assessment, cost estimations, economic / financial modelling);
• Front-End Engineering Design;
• Detailed Engineering Design; and
• Construction of gas gathering network
• 2 compressor stations;
• 60 km pipeline gathering network;
• Compressed natural gas (CNG) station – Mother Station;
• CNG transport assessments;

• Customer identifications;
• Two Daughter Stations.

Phase II: LNG & Liquid Helium 50 TPD Plant & Vehicle Conversions

• 14 future wells;
• 3 mmscfd production capacity;
• Gas processing facilities;
• Compressor stations;
• Gas processing facilities;
• 100 km pipeline gathering network;
• Helium extraction and LNG Plant (50 TPD)
• Future LNG production: > 150 TPD

The LNG plant include LNG & LHe storage, truck fuelling facilities. The LNG is transported to various LNG consumers (retail services stations among other on the N3) which include an LNG tank and LNG vehicle loading. EPCM is the preferred EPC contractor for conducting the execution works on the customer sites

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