Kinetiko receives IDC funding for the SA gas project
The state-owned Industrial Development Corporation of South Africa (IDC) has advanced the first funds towards its joint venture with Afro Energy, a subsidiary of Sydney-listed Kinetiko Energy, to develop gas assets in the Amersfoort region of South Africa, the Australian company said on April 5.
IDC has advanced 16.3mn rand ($0.91mn) out of its 70mn rand commitment to the joint venture as per the deal signed in April last year.
The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business.
The joint venture will develop a gas field in South Africa in two phases. The first will be the development of approximately 10 wells and the construction of a gas terminal with a gas treatment and processing plant, metering station and pipeline gathering system.
The second phase will comprise the commencement of gas production from existing wells and the development of a further approximately 10 wells along with the maintenance and expansion of facilities as required.
The investment and development will be conducted through an incorporated special-purpose vehicle named Afro Gas Development. The project is budgeted to cost approximately 155mn rand which will be contributed 45% (70mn rand) by the IDC and 55% (85mn rand) by Afro Energy. Kinetico said that Afro Energy has advanced 20mn rand as part of its contribution for its 55% ownership of the joint venture.