SA natural gas and helium producer Renergen has awarded preferred bidder status for the second phase of the company’s gas and helium project.
Renergen said on Wednesday the He4u consortium, comprising Chart Industries, WBHO and Aurex Constructors, would advance phase two of the Tetra4 liquid natural gas (LNG) and helium liquefaction project.
The He4u consortium will be responsible for the design, procurement, delivery, construction and commissioning of Phase 2, “leveraging their collective expertise to drive the project forward”, Renergen said.
Chart Industries, a US-based engineering equipment company in the clean energy and industrial gas markets, will provide helium liquefier and LNG liquefaction technologies, while WBHO will use its construction capabilities and experience in engineering, procurement and construction projects.
Aurex Constructors, a Midrand-based construction company, will contribute in structural, mechanical, electrical, instrumentation and piping services.
Renergen bought the Virginia Gas Project in the Free State in 2015. It is SA’s first onshore natural gas exploration and production project. It started producing LNG in November 2022 and achieved initial helium liquefaction in January 2023.
Phase two represents a substantial scale-up from the initial phase, the company said.
“We are excited to have such an experienced and technically strong team executing our project on a turnkey basis, and we have every confidence in the skill set they bring to the table,” Renergen CEO Stefano Marani said.
The bidding announcement comes as Renergen is set to be acquired by ASP Isotopes, a US-based and Nasdaq-listed company, which announced plans in May to acquire all of Renergen’s issued shares.
The deal, supported by more than 35% of Renergen shareholders and expected to close in the third quarter of 2025, would make Renergen a wholly owned subsidiary of ASPI, with the current management team remaining in place and Marani joining ASPI’s executive team in the US.
A key feature of the deal is $750m in US government debt funding to expand helium production. Should the scheme of arrangement not be approved, ASPI has indicated it may pursue a general standby offer to acquire up to 100% of Renergen’s shares.
Helium has became a sought-after commodity, with a 2024 report by market research firm IDTechEx indicating global demand is expected to almost double in 10 years.
LNG, though criticised by environmental activists, is an important energy source in the global transition away from coal.
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