Botswana 'Accepts Idea of CBM-Fueled Power'

Australia and AIM-listed Tlou Energy, which wants to develop power in southern Africa fueled by coalbed methane (CBM), said June 21 that the Botswana government has proposed that the delivery of 100 MW of CBM power be incorporated into its future generation supply plans.

Tlou described this as a “very significant development” validating the company's own strategy as it awaits results of its tender for an initial 10-MW, CBM-fired pilot project, under the government's 100-MW power supply plans.

Proposed creation of a power generation hub at Orapa (Map credit: Tlou Energy)

Tlou acting managing director Gabaake Gabaake said a possibility exists that Tlou will be granted approval for a project larger than 10 MW: "Should our application be successful, it will allow the company to fast-track the development of the Lesedi and Mamba project areas knowing we have a long-term committed government backing our project; a larger project also gives Tlou more options and the ability to capitalise on economies of scale."

Tlou said that the operations team at the Lesedi field is now conducting planned maintenance. As it previously reported, sustained gas flows have been achieved following successful dewatering of the main producing well Selemo 1, with the Selemo 2 and 4 wells also mobilised in late April 2016. 

Achieving sustained and commercial flow rates from Selemo is key to the success of the project, it said. A further update on testing operations will be provided later this month once maintenance is completed.

Arrangements are underway for gas to be used at the 90-MW state-owned Botswana Power Corporation power plant at the Orapa diamond mine, the largest diamond mine in the world. This plant now burns imported diesel. Tlou said it already submitted an expression of interest to supply gas to Orapa in 2015 and also hopes to be in a position to update upon this in due course.

Mark Smedley | www.naturalgasafrica.com