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RENERGEN LIMITED Reports Significant Progress in Virginia Gas Project – H1 2024 Review

Tinashe Mupasiri



Renergen Limited, a key player in the global helium and LNG markets, showcased notable achievements and challenges during the review of its interim consolidated financial statements for the six months ended 31 August 2023 (H1 2024). The report highlights the strides made in advancing Phase 2 of the Virginia Gas Project (VGP) and the strategic developments in the production and funding aspects of the project.

Key Highlights: Progress and Challenges

The Group achieved substantial milestones in advancing Phase 2 of the Virginia Gas Project, aiming to solidify its position as a global helium player. Notable successes during H1 2024 include the approval of significant senior debt funding from the United States Development Finance Corporation (DFC) and Standard Bank of South Africa (SBSA), amounting to US$500 million and US$250 million, respectively.

Several wins marked this period, including the acquisition of a bridge loan from SBSA, concluding an LNG offtake agreement with Time Link Cargo, and the identification of additional gas reservoirs through surveys. The Department of Mineral Resources and Energy (DMRE) granted Phase 2 environmental authorization, a critical step towards the project’s progression.

Despite these achievements, challenges were encountered, notably a leak in the helium cold box, which required repairs and impacted LHe production. The report highlighted the impact on LNG production, associated with downtime due to repairs, reintegration, and scheduled maintenance.

Operational Insights

LNG production during this period reached 2,386 tonnes, demonstrating consistent growth in capacity. The Group anticipates reaching the maximum nameplate capacity of 50 tonnes per day by H1 2024 as the drilling campaign progresses. Tetra4, responsible for the VGP’s exploration, development, and production activities, secured an LNG offtake agreement with Time Link, further solidifying its position in the local market.

Renergen’s Phase 2 expansion aims to reach a total capex spend of up to US$1.2 billion, with US$750 million of debt already secured. The Company plans to raise the remaining equity in two tranches to cover plant operation and expand further. The anticipated start of Phase 2 operations coincides opportunistically with an expected gas shortage in South Africa.

Financial Outlook

While the revenue from ordinary activities saw an increase, the total comprehensive loss for the period increased by 77.6%. Headline loss per share increased by 54.9% from the prior period.

The Board of Directors chose not to declare a dividend for the period ended 31 August 2023.

Uncertainties and Going Concern Status

The auditors highlighted material uncertainties concerning regulatory approvals, completion of funding initiatives, and the Group’s ability to continue as a going concern, potentially impacting its future operations and financial stability.

Investors are encouraged to review the full announcement for comprehensive details, as this short-form announcement only provides a summary.

For detailed information, the full announcement can be accessed here.

The auditors, BDO South Africa Incorporated, provided an unmodified review opinion but emphasized the uncertainties impacting going concern in their report.


Renergen Limited’s achievements in H1 2024 reflect a commitment to becoming a significant player in the global LNG and helium markets. The report, while outlining successes, draws attention to the challenges and uncertainties that might affect the Group’s future, highlighting the importance of regulatory approvals and funding initiatives in their strategic progression.

Renergen Limited remains optimistic about the prospects of the Virginia Gas Project, poised to navigate challenges and capitalize on opportunities as they arise.

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