Australia's Kinetiko seeks fast-track route to South Africa gas production
Australian company Kinetiko is taking a two-step permitting process to accelerate gas production at its South African Brakfontein project ahead of a looming national gas shortage, the company's executive chairperson said.
The company is applying both for a full production right and a bulk sampling permit, which executive chairperson Adam Sierakowski said could be approved more quickly and allow limited gas production within six months.
South Africa is moving towards gas as it transitions away from its primary energy source, coal, and Kinetiko's project provides the government with a home-based supply option together with liquefied natural gas import terminals.
Kinetiko said its full production right is expected to be in place by the end of 2027. If granted, it would be only South Africa's second onshore gas production right.
"We may have the right for a small amount of gas to be produced within the next six months, but we are targeting main phase 1 production for the end of 2027," Sierakowski told Reuters.
Developing the first phase of a compressed natural gas project, Kinetiko envisages adding volumes incrementally across its acreage as part of a "rolling cluster" strategy, with plans to convert its current certified six-trillion cubic feet gas resource into more than one-trillion cubic feet of recoverable gas.
New acreage being acquired may see upside potential topping ten-trillion cubic feet he said of Kinetiko's shallow conventional gas deposits close to major industrial users such as Sasol, power utility Eskom and miners.
Sierakowski said the company was "very confident" it would be able to help meet demand ahead of the 2030 gas cliff scenario when South Africa faces gas shortages.
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