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.
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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.