Australian gas explorer Kinetiko Energy has discovered gas reserves in Amersfoort in Mpumalanga province which the Department of Mineral Resources and Energy (DMRE) has confirmed and welcomed.
Kinetiko Energy, which focuses on commercialising advanced shallow conventional gas and coal bed methane projects, has a 49% stake in Afro Energy and has indicated that the discoveries have been confirmed through an independent gas reserves and resources report. Afro Energy holds the exploration permits for parts of Mpumalanga province and has signed a joint development agreement with the Industrial Development Corporation to coinvest in the production and exploration of gas at approximately 20 wells in Amersfoort. The maiden gas reserves were discovered through a planned 20-well pilot production cluster that forms part of this joint venture.
Natural gas forms part of the energy mix envisaged in the Integrated Resource Plan (IRP 2019), South Africa’s blueprint policy for electricity generation. It is considered a transition fuel globally and provides the flexibility necessary to run the country’s current electricity generation system in a cost-effective manner.
“In this regard, the DMRE promotes exploration and production of gas and supports the development of gas infrastructure that will augment the country’s electricity generation capacity. Gas is one of the resources needed for baseload energy required to strengthen South Africa’s energy security and propel the quest for industrialisation that will bring about growth and development,” the department said in a statement.