By Ukumbi Afrika |
Getting your Trinity Audio player ready...
|
Australian energy company Kinetiko is seeking to accelerate natural gas production in South Africa through a fast-track permitting strategy, positioning its Brakfontein project to help meet rising domestic demand as the country prepares for an anticipated gas supply shortfall.
Australian energy company Kinetiko Limited is advancing plans to bring its South African gas project into production sooner by pursuing a dual permitting strategy aimed at supplying the country’s growing natural gas market ahead of an expected supply crunch.
The company announced that it is simultaneously applying for a full production right and a bulk sampling permit for its Brakfontein Gas Project, a move designed to allow limited commercial gas production while the broader regulatory approval process continues.
According to Executive Chairman Adam Sierakowski, approval of the bulk sampling permit could enable the company to begin producing modest volumes of gas within the next six months.
“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.
Supporting South Africa’s Energy Transition
South Africa is increasingly looking to natural gas as a transition fuel as it seeks to reduce its dependence on coal while maintaining reliable energy supplies.
Kinetiko believes its onshore gas resources could become an important domestic supply source alongside planned liquefied natural gas (LNG) import terminals.
The company expects to secure its full production licence by the end of 2027. If approved, Brakfontein would become only the second onshore gas production project in South Africa to receive a full production right.
Expanding Domestic Gas Supply
Kinetiko plans to develop the project through a phased approach, gradually increasing production across multiple gas fields under what it describes as a “rolling cluster” strategy.
The company currently reports certified gas resources of approximately six trillion cubic feet (tcf) and aims to convert more than one trillion cubic feet into recoverable commercial reserves during the initial development stages.
Additional exploration acreage currently being acquired could increase the company’s overall gas resource potential to more than 10 trillion cubic feet, according to Sierakowski.
The shallow conventional gas deposits are strategically located near several of South Africa’s largest industrial energy consumers, including:
- Sasol, the country’s leading chemicals and energy company;
- State-owned electricity utility Eskom; and
- Major mining operations requiring reliable industrial energy supplies.
Preparing for the “Gas Cliff”
Industry analysts have warned that South Africa could face a significant decline in domestic gas availability later this decade as existing regional gas supplies diminish.
The anticipated shortfall—often referred to as the “2030 gas cliff”—is expected to increase the urgency of developing new domestic gas resources and alternative import infrastructure.
Kinetiko says it is well positioned to contribute to the country’s future energy security by providing locally produced natural gas before those shortages become more severe.
Why It Matters
Natural gas is expected to play a critical role in South Africa’s energy transition by supporting electricity generation, industrial production and economic growth while reducing dependence on coal. Accelerating domestic gas production could strengthen energy security, reduce reliance on imported fuel and help bridge supply gaps as the country moves toward a more diversified energy mix. Successful development of projects such as Brakfontein may also encourage further investment in South Africa’s upstream energy sector.
Source: Reuters
Reporting: Wendell Roelf.
Editing: Louise Heavens.