Environmental and Social Impact Assessment for Tetra4 LNG - Phase 2 Project (DFC-TETRA)

Countries
  • South Africa
Geographic location where the impacts of the investment may be experienced.
Specific Location
Virginia, Free State, South Africa
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • US International Development Finance Corporation (DFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Tetra4 (Pty) Ltd
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
Not Disclosed
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ DFC website

Updated in EWS Feb 17, 2023


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The Project involves the expansion of Tetra’s Helium and LNG Production and is located in Virginia, Free State, South Africa. The Project will expand helium and liquefied natural gas (LNG) production at the Borrower’s existing Virginia Gas Project. The Phase 2 targets a production capacity of five (5) metric tonnes of liquid helium per day and 670,000 cubic meters per day per day of LNG.

The LNG produced by the Project will be sold locally. Tetra’s production rights cover an area of 187,000 hectares. No thermal power generation has been included in the current Project scope and an ESIA on power generation will be conducted when Tetra decides to secure power supplies from an Independent Power Producer (IPP). The surrounding areas are primarily industrial and/or commercial areas as well as large commercial farms which border the access roads.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

According to DFC documents:

The Project has been reviewed against DFC’s categorical prohibitions and determined to be categorically eligible. The Project is screened as Category A because it involves a major expansion of an existing LNG and helium production facility which has the potential to cause significant and irreversible impacts which need to be adequately mitigated. Primary environmental and social issues of concern include worker and community safety.


The major risks are associated with the potential for accidental releases of methane (the primary component of natural gas) from process upsets resulting in fire and explosion, but such risks have been determined to be at acceptable levels at the Project fence-line because of the moderate gas pressure (with a maximum pressure of 275 bars) and the volume of gases (helium and LNG) being produced. In addition, there are also potential impacts and risks commonly associated with hazardous materials management, solid and hazardous waste management, occupational health and safety, and community health, safety, and security.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Tetra4 (Pty) Ltd (a wholly owned subsidiary of Renergen) holds a Gas Production Right (Ref: 12/4/1/07/2/2) that was granted in 2012 which spans approximately 187 000 hectares for the development of natural gas production operations near the town of Virginia in the Free State Province. Within the approval of the Production Right, the 2010 Environmental Management Programme (EMPr) was approved which was applicable to a large portion of the Production Right area.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Tetra4 Proprietary Limited Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

The Project ESIA will be available for review at:
Virginia Public Library,
47 Virginia Gardens, Virginia, 9431

and

Welkom City Library,
Welkom Central, Welkom, 9460

 

ACCESS TO INFORMATION

Unlike many other development finance institutions, DFC does not currently have an access to information policy.

Under the United States Freedom of Information Act (FOIA), DFC is obliged to respond to reasonably formulated requests for Agency records. However, DFC may apply exemptions from release to certain types of information and may charge fees in responding to requests. DFC has a designated FOIA officer who is trained in how to respond to requests and implement the law. You can learn more about filing a FOIA request at: https://www.dfc.gov/foia

ACCOUNTABILITY MECHANISM OF THE UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE CORPORATION (DFC)

The Office of Accountability is an independent office that addresses complaints about environmental or social issues related to DFC-supported projects. The office provides communities an opportunity to have concerns independently reviewed and addressed. If you submit a complaint to the Office of Accountability, it may assist you by either seeking to address your problems by facilitating a problem solving dialogue between you and those implementing the project and/or investigating whether the DFC complied with its policies to prevent environmental, social, human rights, and labor harms.

You can find more information about the Office of Accountability at: https://www.dfc.gov/who-we-are/office-accountability

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How it works