Zest WEG is supplying locally manufactured transformers, switchgear and substations to South Africa’s exciting onshore natural gas and helium project, Tetra4. Being developed by emerging producer Renergen near Virginia in the Free State province, the natural gas deposit reportedly contains helium concentrations of up to 12% compared to typical levels of around 0.5%.
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Tetra4, South Africa’s onshore natural gas and helium project, is being supplied with transformers, switchgear and containerised modular substations by local electrical equipment specialist, Zest WEG.
Developed by emerging producer Renergen, Tetra4 is the country’s first and only holder of an onshore petroleum production right. Located near Virginia in the Free State, the natural gas in the deposit reportedly contains world-beating concentrations of helium – up to 12% compared to typical levels of around 0.5%.
The first phase of the project is advancing well, with construction of the liquid natural gas (LNG) and helium plant scheduled for completion in early 2022.
According to Lukas Barnard, Zest WEG’s sector specialist for oil and gas business development, the equipment ordered from Zest WEG has been delivered for installation. “The transformers we have been contracted to supply are a 7.0 MVA 33/11 KV unit and two
1.5 MVA 6.6/0.4 KV units, manufactured locally at our transformer facility in Wadeville,” says Barnard. “We are also supplying the 33 kV, 11 kV and 6,6 kV medium voltage switchgear, which have been installed into two six-metre containerised substations that were locally manufactured by Zest WEG at its Heidelberg facility.
“The medium voltage switchgear was installed in the modular substations in Heidelberg, where a factory acceptance test was conducted before the equipment was transported to site,” he says, adding: “the complete package is managed by a single point of contact project manager at Zest WEG, easing the customer’s administrative burden”.
Renergen says it wanted a supplier with the necessary experience and expertise, but more than that it needed a partner that could meet the tight delivery requirements, with enough flexibility to find solutions to the challenges related to a project of this nature.
“There have been many benefits to working with local companies, including additional flexibility and control while allowing us to react quickly to changes and challenges that arise as we roll out the project,” says Nick Mitchell, Renergen Chief Operating Officer.
“Any support of local business has far reaching economic benefits for the communities in which they operate; and this remains a critical balance for us to achieve in a project where not all the components can be manufactured, or are available, locally. It also reduces currency risk by minimising our exposure to exchange rate fluctuations.”
Renergen also emphasises the advantage of Zest WEG’s package solutions capability, especially in a project like this with multiple streams of work that need to be coordinated across multi-disciplinary teams. Barnard says this is where Zest WEG’s project manager added considerable value in terms of management, procurement and project flow.
“Where multiple contractors and suppliers are involved, the project flow becomes very difficult and can generate significantly more risk,” he says. “Our project manager was able to work with the customer to mitigate these risks and streamline the roll-out.”
He also notes the advantages of containerised and E-House modular substations in fast track projects. By manufacturing the units in a dedicated facility, Zest WEG provided an efficient solution while reducing the on-site responsibilities of the project developers.
“Building a brick-and-mortar substation means more personnel and activity on site over an extended period, with all the related health and safety implications such as inductions and medical checks,” says Barnard. “It is quicker and far more convenient to build it in a well-equipped facility such as ours, where it is also possible to run factory acceptance tests before delivery,” he advises.