Tetra4, developer of the Virginia Gas Project in South Africa, has entered into an additional take-or-pay contract to supply liquified natural gas (LNG) to a domestic food processor, establishing a multi-year contracted cash flow supporting Phase 1 commercial operations, which remain targeted for completion in the third quarter (3Q) of 2026.
The LNG sale and purchase agreement, which is a five-year take-or-pay contract, is priced at greater than $16 /GJ (0.9478 MMBtu) of LNG, (~$16 per Thousand standard cubic feet (Mscf)) at current exchange rates.
Tetra 4 is a South African subsidiary of Renergen and the Virginia Gas Project is located in the country’s Free State province.
Following the execution of this contract, Renergen has now secured take-or-pay contracts to support approximately 75% of the LNG volumes anticipated from Phase 1.
Renergen is in discussions with multiple other potential customers and expects to complete contracting for Phase 1 volumes for both the liquid helium and LNG produced from Phase 1 during 3Q 2026. The Company expects to complete contracting for Phase 1 during 3Q 2026 and commence contracting for a significant portion of the expected Phase 2 volumes during the second half of 2026.
“The associated LNG produced from the Virginia Gas Project is welcomed by local industrial businesses to support their energy needs”, says Paul Mann, Executive Chairman and Chief Executive Officer of ASP Isotopes, the parent company of Renergen. “ We look forward to completing the construction of Phase 1 and, in addition to supplying domestic customers with LNG, starting to supply international customers with liquid helium at a point in time when geopolitical issues have greatly constricted the supply of this critical material.”
Phase 1 is expected to produce approximately 2.5MMscf/day of LNG and approximately 70 Mscf/day of liquid helium, with commercial production expected to commence during the third quarter of 2026.
Renergen founders purchased the exploration and gas rights for the 187,000-hectare area near Virginia, Welkom, and Theunissen in the Free State in 2012. The initial gas discovery occurred in 2014, when exploration campaigns first tapped into significant biogenic methane and helium reserves trapped within the deep faults of the Witwatersrand Supergroup. This led Tetra4 to secure South Africa’s first onshore petroleum production right, transforming the site into the nation’s first commercial liquefied natural gas (LNG) and liquid helium plant.
Between 2019 and 2020, Tetra 4/Renergen initiated a highly successful horizontal appraisal drilling programme. On December 10, 2019, an inclined well intersected gas-charged sandstone, flowing over 850,000 standard cubic feet of gas per day to the surface.
At an assumed sale of $15–18 per Mscf for LNG and an average of $600/ Mscf for liquid helium, Renergen should be capable of generating revenues of over $27Million on an annualized basis following the expected completion of Phase 1. The Company expects to begin recognizing these revenues during the second half (2H) of 2026, ASP Isotopes says in a release.
The Company is in active discussions with additional potential customers regarding offtake of both LNG and liquid helium from both Phase 1 and Phase 2.
