Renergen has signed a liquefied natural gas (LNG) supply deal with Logico Logistics. The South African domestic natural gas and helium producer and the South African niche market service provider will combine to deliver LNG to some Total service stations in South Africa.

Renergen signed an agreement with Total South Africa earlier this year for the joint marketing and distribution of LNG. Logico will be transporting LNG to the service station owned by Total along the N3 route between Johannesburg and Durban.

The natural gas producer is currently developing the Virginia Gas project in the Free State. The project will be developed in phases and the first phase of the construction will connect existing wells to a new gas pipeline, with the first production expected in 2021. The first phase will also include the construction of a new helium and LNG plant. The second phase of the project will begin in 2023.

Once the plant is operational, Renergen will stop to produce compressed natural gas and replace it with LNG as there is an increasing demand for LNG across South Africa.

Commenting on the signed deal, the Managing Director of Logico, Clint Brook said, “Dual fuel trucks are undoubtedly the way forward and the ability to implement is on our doorstep. Full gas trucks will become a reality in the medium term when Renergen expands its production and footprint in South Africa and the outlook for green energy is very exciting.”