- Renergen (RLT) announces three new conditional helium sales agreements from its planned Phase 2 plant at the Virginia Gas Project
- Following the company’s maiden sales agreements in April for Phase 2 helium, Renergen has secured a further three agreements for 10 and 15 years
- The cumulative volume of helium to be supplied under the contracts is 196 containers per annum
- Renergen has now completed sales agreements for around 65 per cent of the five ton-per-day Phase 2 helium production at the Virginia Gas Project
- Renergen is trading in the grey at $1.51 at 10:13 am AEST
Renergen has announced multiple conditional helium sales agreements from its planned Phase 2 plant at the Virginia Gas Project.
Following the company’s maiden sales agreements in April for Phase 2 helium, Renergen has secured a further three agreements for the supply of helium for 10 and 15 years with Linde Inc, Messer LLC and Helium24 LLC. The cumulative volume of helium to be supplied under the contracts is 196 containers per annum.
“Adding these prestigious names to our customer list for Phase 2 production is an incredible achievement and a testament to what the team is building at Virginia,” Renergen Managing Director and Chief Executive Officer Stefano Marani said.
The agreements are conditional upon completion of a number of project development milestones at the Virginia Gas Project.
Renergen has now completed sales agreements for around 65 per cent of the five ton-per-day Phase 2 helium production at the Virginia Gas Project.
All contracts are based on a fixed price, which will escalate on every anniversary at the US Consumer Price Index, starting from the fourth quarter of 2023.
“These sales agreements along with the iSi agreement in April accounts for a combined 220 containers per annum, which represents 65 per cent of design capacity contemplated in the Front-End Engineering and Design (FEED) of the Phase 2 Project,” Mr Marani said.
“Importantly, having long-term off-take agreements in place with tier-one customers provides a strong foundation for the company when we enter discussions with lenders to approve project funding, as it eliminates a significant component of market risk.”
The agreements are conditional upon completion of a number of project development milestones at the Viriginia Gas Project, with Renergen to deliver at least 80 per cent of annual take-or-pay quantities during any consecutive six-month period once the plant is operational.
Renergen was trading in the grey at $1.51 at 10:13 am AEST.