Kinetik readies well for S African CNG pilot unit
Kinetiko Energy has completed the commissioning of equipment at the KA-o3PTR well in preparation to launch production from the Amersfoort compressed natural gas (CNG) pilot project in South Africa, the Sydney-listed junior said in a stock filing on March 23.
Kinetiko has also finished upgrading 2.5 km of access road and the trailer and landing area at the well site. Clean-up flow operations are underway at the well in preparation for production tests. Kinetiko aims to start pilot gas production in the second quarter.
The company's joint venture Afro Energy is in advanced talks with potential gas off-takers for small-scale and intermittent CNG supply from KA-o3PTR and possibly from the KA-03PT2 well, where customers can buy gas at an on-site transfer point, compress it using their own equipment and transport it to customers in Johannesburg and Witbank. CNG is becoming increasingly in popular as a vehicle fuel in South Africa, and it can also be used for heating and gas-fuelled stoves.
Kinetiko intends to apply for full production rights for the ER56 area containing KA-o3PTR as soon as possible after commencing pilot operations. It will also seek certification of its gas reserves.