SA's largest onshore gas project to be developed on the back of significant discovery

The joint venture will exploit significant onshore, shallow, gas reserves in the Mpumalanga province.

A major gas discovery has given rise to SA's largest onshore LNG project.The project will exploit significant gas reserves near Secunda in Mpumalanga.On the back of a major gas find near Secunda, Kinetiko Energy and the Industrial Development Corporation have joined forces to develop a Liquefied Natural Gas project which will ultimately deliver 500MW of gas-powered energy – making it South Africa's largest onshore gas project.

The unconventional gas is found in both the sandstone and coal formations and a recent independent gas reserves and resources report from Sproule B.V confirmed"positive economics and enormous scalability" of the contingent resource. The first stage 50MW equivalent project is estimated to cost approximately AUD 138 million , comprising AUD 90 million equity and AUD 48 million debt.

The corporation has also been granted the option to participate in the co-development of further 1 000MW LNG gas equivalent projects, totalling 1.5GW.

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Fin24 /  🏆 21. in ZA

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