Renergen (ASX:RLT) pens LNG supply deal with Consol Glass

• Renergen (RLT) signs a five-year supply deal for liquefied natural gas with Consol Glass, commencing in January next year
• The contract will follow phase-one commissioning of the Virginia Gas Project in South Africa (SA) with pricing tied to the floating liquified gas price in SA
• RLT says supply volumes will be ramped up over a three-month period to reach an approximate volume of 14 tonnes per day
• Shares are down 2.52 per cent to $1.55 each

Natural gas and helium producer Renergen (RLT) has penned an agreement for the supply of liquefied natural gas or “LNG” to Consol Glass, starting in January, 2022.

The agreement is set to take effect shortly after phase-one commissioning of the Virginia Gas Project in South Africa (SA).

The five-year contract will reportedly carry a price linked to the floating liquified petroleum gas price in SA, as published by the Department of Mineral Resources and Energy.

According to RLT, supply volumes will be ramped up over a three-month period to reach an approximate volume of 14 tonnes per day as necessary equipment is installed and tested.

Renergen CEO Stefano Marani said the contract marked the company’s first that wasn’t linked to the supply of gas to trucks as a substitution for diesel.

“[The deal] with Consol is one that has created significant excitement in the business,” he said.

“It also shows the increasing emphasis that companies are placing on reducing their carbon footprint and our LNG is the perfect way to do this in an innovative way that gives the end-user greater predictability in their future energy prices.”

Mr Marani said the company looked forward to engaging on phase two in due course.

RLT hares were down 2.52 per cent to $1.55 each at 2:07 pm AEST.