Kinetiko signs off-take agreement in South Africa
Afro Energy, a subsidiary of South Africa-focused Kinetiko Energy, has entered into a joint venture (JV) agreement with Vutomi Energy to produce and sell electrical energy to third-party private sector off-takers, Kinetiko said on December 23.
According to the agreement, Vutomi will supply the 1 MW gas reticulation engine to the JV while Afro will provide the gas from wells located on the Korhaan project.
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“The creation of the JV with Vutomi Energy is an important development for Kinetiko in its transition from gas explorer to gas producer,” executive chairman of Kinetiko, Adam Sierakowski said. “This JV illustrates the potential of how the company can scale commercial gas production to a variety of domestic customers.”
Sales of gas under the JV will substantially assist Kinetiko’s target of converting its established 4.9 trillion ft3 contingent gas resource into first reserves, he added.
Vutomi is an independent power producer based in Mbombela, South Africa.