Botswana CBM Firm Extends Pact with GE

Australia-listed coalbed methane (CBM) developer Tlou Energy said November 28 it had extended a cooperation agreement with US giant GE and IK Holdings, an Australian firm set up to develop new sources of gas-fired power in Botswana.

First signed in April 2015, it was set to expire November 30 and has now been extended until February 28 2017.

The agreement provides the framework for co-operation between the parties in relation to sharing infrastructure and technical support for the delivery of the 50MW power project; gas supply to the existing 90MW Orapa power station owned by Botswana Power Corporation; and a proposed 300MW gas-fired power project to be developed by IK Holdings and GE that could potentially export some power to neighbouring South Africa.

Tlou is the most advanced in planning a CBM-fired power project in Botswana but is still in the process of firming up enough reserves for its strategic plans. Two less advanced small firms announced their plans in mid-November to develop projects elsewhere in the country.

Mark Smedley