Nasdaq- and JSE-listed advanced materials company ASP Isotopes (ASPI) says oil and gas producer Tetra4 has entered into a contract for the sale of liquefied natural gas (LNG) to be produced at the Virginia gas project in the Free State.
The LNG sale and purchase agreement is a five-year, take-or-pay contract with a South African food processor, and this offtake represents about 10% of the project's Phase 1 nameplate capacity.
The price per unit is set at greater than $16/GJ of LNG, on an all-in plant-gate basis, at current exchange rates, ASPI says.
Tetra4 is a subsidiary of liquid helium and LNG company Renergen, which is a subsidiary of ASPI.
“South Africa's domestic energy situation has proved challenging during recent years and the LNG produced from the Virginia gas project is welcomed by local industrial businesses to support their energy needs,” says ASPI CEO and executive chairperson Paul Mann.
