Name of the Project
Project Alpha.

Location
Brakfontein, Mpumalanga, South Africa.

Project Owner/s
The proposed project is a joint development agreement (JDA) between Kinetiko, its wholly owned subsidiary Afro Energy, and FFS Refiners.

Project Description
The project involves the joint development of a pilot liquefied natural gas (LNG) plant at Brakfontein, which will be executed in four phases.

Phase 1a will focus on drilling five additional gas production wells and upgrading existing ones. This stage also includes gas testing, appointing a qualified expert to certify reserves, preparing a business case for the LNG field, applying jointly for a production right and establishing a JDA steering committee to oversee the process.

Phase 1b will involve the ordering and commissioning of a cryobox LNG liquefaction unit with a capacity of 5 000 t/y. Supporting infrastructure, such as gas, water and power reticulation systems, will be designed and built. At this stage, LNG marketing and distribution will also start.

The outcomes from Phase 1b will feed into a full-scale LNG production business case for the joint venture partners. Phase 2 aims to expand LNG production across a larger licensed area, increasing liquefaction capacity fivefold to 25 000 t/y.

In the final phase, the JDA partners plan to extend LNG operations to additional tenement areas held by Kinetiko, beyond Brakfontein. This expansion could increase production capacity significantly, reaching up to 125 000 t/y.

Potential Job Creation
Not stated.

Capital Expenditure
Phase 1a entails capital expenditure of R64.31-million.

Planned Start/End Date
Not confirmed.

Latest Developments
Kinetiko is taking a two-step permitting process to accelerate gas production ahead of a looming national gas shortage.

The company is applying for a full production right and a bulk sampling permit, which executive chairperson Adam Sierakowski has said could be approved more quickly and allow for limited gas production within six months.

Kinetiko expects its full production right to be in place by the end of 2027. If granted, it would be only South Africa's second onshore gas production right.

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 might result in upside potential topping ten-trillion cubic feet, Sierakowski has said of Kinetiko's shallow conventional gas deposits close to major industrial users such as Sasol, State-owned power utility Eskom and miners.

Kinetiko is "very confident" that it will be able to help meet demand ahead of the 2030 gas cliff scenario, when South Africa faces gas shortages.

Key Contracts, Suppliers and Consultants
None disclosed.

Contact Details for Project Information
Kinetiko, email info@kinetikoenergy.com.au.
FFS Refiners, tel +27 31 459 5300 or email ffs@ffs.co.za.