Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) CEO Nick de Blocq tells Proactive the company has taken a massive step in its objective to provide a sustainable cleaner energy solution for South Africa by executing an agreement with the Industrial Development Corporation of South Africa (IDC) to co-develop a joint venture for the appraisal and production of LNG to deliver 50MW growing to 500MW gas equivalent energy. The first stage will be a 50MW equivalent project estimated to cost approximately A$138 million comprising A$90 million in equity and A$48 million in debt. The agreement also grants IDC the option to participate in the co-development of further 1,000MW LNG gas equivalent projects, totalling 1.5GW. Meanwhile, Kinetiko has also passed another major milestone on declaring maiden gas reserves of 6.4 BCF at its South African JV gas fields with its 49% share totalling 3.1 BCF.
de Blocq said: This is a step change in the scale of the companys development and represents a national project to support South Africas transition to cleaner, reliable, affordable energy.
I cannot overstate the importance of this massive step we have taken in collaboration with our IDC joint venture partners, as it represents a level of confidence in our project from high layers of government.
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Kinetiko Energy Ltd