SA's first onshore helium and NG development underway
A historic agreement to commercialise the first and only onshore petroleum and natural gas (NG) right in South Africa, capable of supplying helium for specialised and industrial markets, was signed this week.
L-R: Nick Haines, of The Linde Group, Renergen chief executive, Stefano Marani, Dr Alexander Brandl of Linde Engineering, and Schalk Venter, Afrox chief executive.
The 187,000 hectare helium/NG field in Virginia, near Welkom, has proven reserves of 25bn cubic feet of natural gas and helium. Under the agreement, TETRA 4 has contracted the helium under an offtake agreement with The Linde Group, via its Global Helium business, being assigned distribution rights for substantial reserves of helium. JSE-listed Afrox, a member of The Linde Group, will operate the plant and market the helium.
Historic moment
“The discovery and commercialisation of the Free State onshore helium source is great news for industry, healthcare and the South African economy as a whole.”
“Signing this agreement marks a historic moment in bolstering South Africa’s self-sufficiency in terms of helium production.” said Afrox managing director, Schalk Venter.
Scarce on earth
Helium, although the second most abundant gas in the universe, is relatively scarce on earth and tends to be found trapped with NG in relatively low concentrations, typically up to 1% by volume of the gas released.
The Free State helium and NG field, however, enjoys concentrations of up to 3-4% by volume.
High-tech extraction technology
Linde’s high-tech extraction technology will separate helium from NG through a single system utilising a patented processing plant which purifies, compresses, liquefies and stores the helium, ready for distribution to customers.
The helium plant will be designed and delivered by Linde Engineering and is expected to commence operations in 2018/19.
The Linde plant reduces the energy needed and cuts carbon dioxide emissions of traditional helium from NG extraction processes, representing the latest in engineering technology advances. The plant is of modular design and will be precision manufactured in Europe before being shipped to the Free State for fast and efficient construction.
Nick Haines, head of The Linde Group’s Global Source Development, Global Helium & Rare Gases, said: “Linde has worked diligently to commercialise this unique helium resource together with TETRA 4 and looks forward to receiving helium upon commencement of plant operations.”
Minimal visual and environmental impact
Utilising the latest in land preservation techniques, TETRA 4 has drilled wells, thousands of feet deep to tap the NG source dome, while ensuring minimal visual and environmental impact on the gas field’s landscape. Wells and well-heads are being interconnected underground via an intricate network of pipes, which will feed directly into the Linde engineered helium processing plant.
Social regeneration
As part of TETRA 4’s commitment to social regeneration, the company has created a number of bursaries for local students in the Virginia/Welkom area and has refitted the local Stilte Primary School with classrooms, furniture, a solar borehole pump, and upgraded the children’s play area.
The company also plans to supply the local operations of MegaBus with compressed natural gas, (CNG) as ‘green’ fuel for its local bus services. Renergen chief executive officer, Stefano Marani, said: “Today is indeed an important milestone as we embark on the beneficiation of this important helium deposit for the benefit of all our stakeholders.”
