The state-owned Central Energy Fund will invest R1 billion into energy company Renergen’s Virginia Gas Project, further expanding South Africa’s nascent local gas infrastructure.
This follows an announcement earlier this month that mining development company Ivanhoe Mines will fund Renergen’s Phase I of the gas project (which commences in April) to the tune of R200.6 million. This is through the mining development company taking a 4.35% initial stake through the placement of just over 5.6milion shares at R35.625 a share.
This latest CEF investment is for the state-owned fund to take a 10% stake in Tetra4, which wholly owns the Virginia Gas Project. Proceeds from this CEF subscription will be used to further develop Phase II of the gas project in the Free State.
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