Kinetiko Energy inks IDC deal for largest onshore LNG project in South Africa
August 23, 2023 at 04:01 pm EDT
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Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) CEO Nick de Blocq tells Proactive the company has taken a massive step in its objective to provide a sustainable cleaner energy solution for South Africa by executing an agreement with the Industrial Development Corporation of South Africa (IDC) to co-develop a joint venture for the appraisal and production of LNG to deliver 50MW growing to 500MW gas equivalent energy. The first stage will be a 50MW equivalent project estimated to cost approximately A$138 million comprising A$90 million in equity and A$48 million in debt. The agreement also grants IDC the option to participate in the co-development of further 1,000MW LNG gas equivalent projects, totalling 1.5GW. Meanwhile, Kinetiko has also passed another major milestone on declaring maiden gas reserves of 6.4 BCF at its South African JV gas fields with its 49% share totalling 3.1 BCF.
de Blocq said: “This is a step change in the scale of the company’s development and represents a national project to support South Africa’s transition to cleaner, reliable, affordable energy.
“I cannot overstate the importance of this massive step we have taken in collaboration with our IDC joint venture partners, as it represents a level of confidence in our project from high layers of government.
Contact Details
Proactive Investors
Jonathan Jackson
+61 413 713 744
jonathan@proactiveinvestors.com
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Kinetiko Energy Limited is an Australia-based gas explorer. The Company is focused on advanced shallow conventional gas and coal bed methane (CBM) opportunities in developing markets in Southern Africa. Its flagship project includes Amersfoort Gas Project in South Africa. The Amersfoort Gas Project is an Exploration programs conducted for the accumulations of onshore shallow gas. The Company owns maiden gas reserves and a 6Tcf 2C contingent resources and exploration area, comprising approximately 6,000 square kilometers (km2). It has exploration rights ER 270, ER 271 and ER 272 being an additional 3,577 km2 to the exploration portfolio. The Company holds 49% interest in Afro Energy (Pty) Ltd, a joint venture structured as a partnership between the Company and Badimo Gas (Pty) Ltd.
KINETIKO ENERGY LIMITED 
