Botswana Re-Tenders CBM Power Project
The Botswana government has finally released a re-tender for the development of a maximum of 100MW of coalbed methane-fueled power plants, five months after it pledged to do so.
Gas-to-power developer Tlou Energy, which is listed in Botswana, Australia and London's AIM, said July 27 July that it had received the re-tender document from the Botswana government and is looking at its terms with a view to putting in a fresh bid to develop its coalbed methane (CBM) reserves at Lesedi and Mamba in eastern Botswana and build a 100MW power plant.
The other company invited to re-tender to build a separate 100MW power station is Sekaname, a local Botswanan firm.
Tlou remarked: "Being the most advanced CBM project in Botswana, with gas reserves in place, having environmental approval for upstream development and a mining licence secured allowing the company to commence development operations, the company is very pleased to receive the re-tender document and will now undertake a compressive review of the terms therein. Tlou is one of two companies to be invited to re-tender for the development of a maximum of 100MW of CBM fuelled pilot power plants in Botswana as an independent power producer."
A compulsory pre-tender meeting with representatives of the procuring department from the Botswana's Ministry of Mineral Resources, Green Technology and Energy Security will be held August 9 2018 while the closing date for receipt of tender offers is September 12 2018.
Lesedi covers about 3,800 km2 of land and consists of four coal and CBM prospecting licences and a mining licence. The Mamba project consists of five coal and CBM prospecting licences covering some 4,500 km2. Lesedi is Tlou's more established project and has independently certified contingent gas resources of 3.2 trillion ft3 (3C) and independently certified gas reserves of 261 bn ft3 (3P).
The release of the re-tender comes about a month after the company raised about A$8mn (US$5.9mn) which, in addition to other available funds, would be spent on drilling production pods in 3Q2018, and as working capital. The core drilling rig, wholly-owned by Tlou, is already onsite, it announced earlier this month.
(The banner photo shows a small CBM-run power unit already started up a year ago by Tlou that fuels its existing operations at Lesedi, courtesy of Tlou Energy's June 2018 presentation)