November 2025

Choosing the Right Virtual Pipeline Logistics

The transition to lower-emission energy sources requires replacing polluting fuels like diesel and heavy fuel oil with alternatives that maintain reliability and affordability. Natural gas and biomethane are central to this shift, as they significantly improve local air quality (reducing (NOₓ and particulate matter) and lower overall emissions (CO₂e) without forcing major industrial overhauls.

The real hurdle is not the fuel, but the infrastructure. Traditional pipelines often cannot meet demand due to limitations in reach, timeline, or capital investment. This is where the virtual pipeline comes in. It uses existing road networks to transport gas—either as compressed natural gas (CNG) or liquefied natural gas (LNG)—from the source, conditioning it as needed, to the end-user. The aim is the same as a physical pipeline—delivering energy—but the method is faster and cheaper, minimizing civil works and commissioning time.

Kinetiko Energy (ASX: KKO) has significantly exceeded reserve expectations with strong gas flow results from its latest extended production test in South Africa. The Brakfontein well, 271-KA03PT10, sustained a flow of 92 Mscfd over 16 days, far surpassing the 50 Mscfd rate assumed by certifier Sproule B.V. The high-quality gas produced was 99% methane, strongly supporting Kinetiko’s LNG pilot plant development plans.

Policy Certainty, Big Rewards: South Africa’s Oil and Gas Sector Could Unlock R23 Billion GDP Boost and 20,000+ Jobs

The EnerGeo Alliance, citing the findings of its report, emphasises that investor certainty is essential to unleashing South Africa’s oil and gas potential, which rivals Namibia’s. According to Global Policy Senior Director Ross Compton, major projects like Block 11B/12B in the Outeniqua basin stand to generate over 20,000 jobs (direct, indirect, and induced) and boost South Africa’s annual GDP by nearly R23-billion. Beyond GDP, developing the upstream sector promises significant tax revenue (e.g., R8.6 billion annually from Brulpadda and Luiperd) and crucial non-revenue benefits like infrastructure development and energy security.

Key Milestones for Gas Field Acceleration

• • • Drilling of new production wells and developing completion strategies for existing wells at Brakfontein.
    • Gas testing and securing a competent person for gas reserves certification.
    • Compiling an LNG business case proposal for broader gas field development.
    • The application for a production right.