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    Tlou Submits Botswana Power Plan


UK minnow Tlou Energy submitted its plan for a coalbed methane (CBM)-power project to the government of Botswana by the September 20 deadline.

by: William Powell

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Natural Gas & LNG News, Africa, Gas to Power, Corporate, Investments, CBM, Political, Ministries, News By Country, Botswana

Tlou Submits Botswana Power Plan

Australia and AIM-listed minnow Tlou Energy submitted its plan for a coalbed methane (CBM)-power project to the government of Botswana by the September 20 deadline, it said in a Q3 market update October 23.

This plan would help the incremental development of a CBM gas industry in the country and create a new market for Tlou's independently-certified gas reserves of 261bn ft³ (3P) and significant contingent gas resources of 3.2 trillion ft³, Tlou said. 

Early 2017, Tlou was asked by the government to submit a proposal for development of up to 100MW of CBM-fuelled pilot power plants in Botswana.

To reduce the initial capital requirement, Tlou's submission outlines how the project could be developed in stages starting with an initial development of 2 MW then 10 MW, increasing further once power is being supplied to the grid and a revenue stream has been established.

Tlou has spoken to interested parties and found interest in financing from international groups as well as strong interest from parties within Botswana who are very keen to support local industry and development, it said.

It said that if its submission response is successful, this will provide an ideal pathway towards a power purchase agreement. Once an initial development is completed, Tlou Energy's gas field will be connected to the regional grid, thereby opening the possibility for the company to provide power across the southern African region, via the Southern African Power Pool. It said its submission would be assessed based on eligibility, technical and funding criteria and that it expects to learn of its success or failure in the near term.

In August, Tlou was granted its mining licence by Botswana's Department of Mines, giving the company security of tenure over the Lesedi project area and progressing Tlou's activities from CBM exploration and appraisal to development. 

Adjacent to Lesedi is the Mamba project, which consists of five CBM prospecting licences covering about 4,500km², and on trend "with the encouraging results observed to date. In the event of a gas field development by Tlou, the Mamba area provides the company with considerable flexibility and optionality." Its five licences were extended in October, until 2019.  


William Powell