Australian gas explorer Kinetiko Energy, which has found shallow sandstone gas in South Africa, has started talks with petrochemical company Sasol on a possible supply agreement, Kinetiko’s chief executive said on Monday.
The natural gas deposit in Block 272, Mpumalanga province, close to Sasol’s Secunda petrochemical complex, could be a boon for Sasol, South Africa’s largest gas user and distributor, which needs to find alternative sources.
Kinetiko CEO Nick de Blocq told Reuters the company was in "very early and undetailed discussions" with Sasol, which he said was geographically "the natural off-taker for any gas produced in our northern block". related to difficulties that threaten the post-2030 viability of Secunda, which produces fuel from coal and natural gas.
Initially, it would produce gas equivalent to 50 megawatts of power, potentially increasing in stages to 500 and eventually 1,500 MW equivalent.
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