An Australian energy group has set its sights on sinking dozens of natural gas wells in Mpumalanga province, aiming to provide "cleaner" fuel to at least one local power station and other industrial sites. But the plan also raises questions about the potential for groundwater pollution and undermining South Africa's commitment to the Paris climate agreement.
The Perth-based Kinetico Energy group is hoping to get approval to start pumping its first commercial gas supplies to industry customers before the end of next year from a new "world-class" gas discovery in southern Mpumalanga.
In an investor presentation earlier this month, Kinetico and its local subsidiary company Afro Energy announced plans to secure regulatory approval to dig a new network of gas production wells, centred initially between the towns of Volksrust and Amersfoort, close to Eskom's Majuba power station.
The site is also close to Transnet's Lilly gas pipeline that runs between Secunda and Durban, via the port of Richards Bay.
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According to Kinetico, the company has achieved a "100% drilling success rate" in its four exploration blocks in Mpumalanga and neighbouring Free State province.
"All 50 wells successfully encountered gas with large, shallow pay zones," the company states, also noting that currently assessed reserves are estimated at more than six trillion cubic feet (6 tcf) of natural gas.
Kinetico executive chairperson Adam Sierakowski has promised "a very light touch to the environment", also asserting that the project will not involve any fracking (shattering underground rock with high-pressure water and chemicals to enable gas flow to the...