Tlou set to begin gas-based power sales to Botswana's grid

Tlou Energy, an Australian company, is set to commence selling gas-based power to Botswana's power grid later this year, it said on March 8.

The recent completion of a 66kV transmission line connects Tlou's Lesedi gas-to-power project directly to both Botswana's power grid and the broader Southern African power pool. The company holds a 10 MW power purchase agreement with Botswana Power Corporation.

In November last year, Tlou commenced gas flow at the Lesedi 6 production pod. The gas produced from Lesedi 6 will be used for electricity generation for the power purchase agreement. 

To facilitate the first power sales, Tlou aims to complete several key tasks, including finishing the substation at the Lesedi site, installing generators, completing the short gas gathering line from the gas wells to the generators, energising the power line, and selling the first electricity. Additionally, minor finishing works on the transmission line and the addition of switchgear at Serowe will be finalised before the initial power sales, Tlou said.

The Lesedi substation, connecting Tlou's power generators to the transmission line, is reported to be approximately 38% complete. The company's initial target is to supply about 2 MW of power, with plans for expansion to 10 MW. This expansion is expected to generate approximately A$10mn/year in revenue.