Energy: South Africa-based Renergen is helping power a local truck company
The only South African domiciled and dual listed ASX stock, Renergen (ASX:REN), just announced a supply agreement for its LNG project.
Local freight shipper Bulk Hauliers International Transport (BHIT) has agreed to buy LNG from Renergen to fuel its fleet of 50 trucks.
The trucks will be powered with dual fuel technology, a combination of natural gas and diesel.
The companies say this will reduce operator costs and improve vehicle lifecycle maintenance.
“BHIT is committed to providing sustainable transport solutions — running trucks on locally produced liquid natural gas fits in perfectly with this,” BHIT director James Cohen said.
Renergen’s gas project is in South Africa’s Free State and covers 187,000 hectares of gas fields. It holds the only onshore petroleum production licence from the South African government.
The Virginia gas project also contains helium, a commodity in short supply but is critically important.
Most people would know helium best as the gas that gives balloons their lift (and raises voices). But other uses include nuclear power stations, MRI machines and fibre optics.
Shares rose modestly this morning, but are up 63 per cent since its ASX listing last May.
Otto Energy (ASX:OEL) and Byron Energy (ASX:BYE) both updated shareholders on operations at their South Marsh Island well in the Gulf of Mexico. They anticipate drilling and evaluation of the SM71 F4 will take 25 days.
The well has so far been drilled down to 3,577 feet and is expected to be drilled down to 8,180 feet. The Byron-operated joint venture is testing an Upper D5 Sand seismic event outboard of the primary D5 Sand producing area where two other wells have been in production since March 2018. The entire reservoir has so far produced 2 million barrels of oil.