HIGHLIGHTS
- Kinetiko has executed a Memorandum of Understanding (MOU) with FFS Refiners to finalise a Gas Supply Agreement
- FFS Refiners is a leading supplier of industrial heating fuels in South Africa, and is seeking to supplement its industrial fuels business with the supply of liquified natural gas (“LNG”)
- Kinetiko and FFS Refiners intend to develop a proof-of-concept gas production trial, that if successful can be scaled into a long-term supply arrangement
- The MOU provides for the potential of FFS Refiners to purchase natural gas produced pursuant to a binding Gas Supply Agreement
- The identification of potential offtakers for gas produced by Kinetiko is significant to the potential growth of Company’s gas reserves
Kinetiko CEO, Nick de Blocq, commented:
“This MOU describes a fundamental approach to our eventual large-scale production plans. FFS brings with them internationally tried-and-tested midstream infrastructure for the production of LNG, as well as the ability to finance and operate the infield assets. Similarly to our recent announcement of an LOI with Gruner Energy, we will be targeting the southern areas of our Block ER271 for this project due to deeper, higher pressured wells with optimum flow rates. This MOU is therefore the second in our plans to develop multiple Joint Ventures with expertise in the provision of mid-stream infrastructure, and with a focus on those who bring an existing market along with them in urgent need of high-quality gas.“
FFS CEO, Andrew Canning, commented:
“FFS is committed to meeting the indisputable imperative facing not only the petroleum industry but all consumers of fossil fuels – to prioritise a cleaner environment for generations to come through the use of alternative energy sources in industry. Natural gas is a crucial transition fuel essential for a responsible and successful migration to lower carbon fuels in South Africa. FFS will use its national footprint and close to 50 years of experience in thermal energy to commercialise indigenous stranded gas resources such as those being developed by Kinetiko.
“FFS has been built with a strong R&D focus and the company successfully completed a pilot project in 2020 when it imported multiple LNG iso-containers for internal use and testing at its Cape Town terminal facility. We have partnered with Galileo Technologies, a pioneer in the de-carbonization of the energy value chain, developing modular solutions for LNG, Biogas, Hydrogen and smart compression sectors, to offer the local market small-scale liquefaction options. FFS aims to produce LNG from other local gas sources in 2024 and to commence the proof-of-concept trial with Kinetiko soon thereafter. We are proud to work with Kinetiko in developing our first-class local gas resources to build a sustainable natural gas market not beholden to imported energy supplies.”
Download the Announcement here
INVESTOR WEBINAR PRESENTATION
Kinetiko Energy Ltd (ASX: KKO) (Kinetiko or the Company), is pleased to announce its participation in the ShareCafe Small Cap “Hidden Gems” Webinar, to be held Friday 3rd of March 2023 from 12:30pm AEDT/ 9:30am AWST.
Nick de Blocq – CEO will provide an overview of the Company which is an ASX listed gas explorer and developer focused on advanced shallow conventional gas and coal bed methane in South Africa.
This webinar can be viewed live via Zoom and will provide viewers the opportunity to hear from, and engage with, a range of ASX-listed leading micro/mid cap companies.
To access further details of the event and to register at no cost, please click on the link below:
https://us02web.zoom.us/webinar/register/WN_QHDjGR87S22HWSzdGDBIHA
A recorded copy of the webinar will be made available following the event.
