Kinetiko Energy, an Australian gas explorer, and the Industrial Development Corporation (IDC) of South Africa are collaborating to establish an LNG project following a significant gas discovery near Secunda. The project aims to produce 0.7 tcf (19.8 bcm) of LNG. A subsidiary of Kinetiko, Afro Energy (49% owned by Kinetiko Energy), has signed a non-binding term sheet with IDC to create a joint venture for LNG appraisal and production, starting at 0.07 tcf (2 bcm) and expanding to 0.7 tcf (19.8 bcm).
The initial project is expected to cost around AUD138m (US$88.7m), with the IDC funding 30% of the joint venture's equity. The parties envision future expansion to 0.7 tcf (19.8 bcm) and potential participation in 1.4 tcf (39.6 bcm) projects. The development of the initial block is anticipated to take two to three years, while subsequent blocks will span nine to 10 years.
Afro Energy possesses exploration rights for commercial LNG over gas fields near Secunda, where substantial gas production has been ongoing from boreholes in sandstone and coal formations. The company seeks to exploit over 2 tcf (56.6 bcm) of gas reserves. In total, Kitetiko has achieved gas reserves reaching 6 tcf (169.8 bcm) in South Africa.