Tlou awards contracts for Lesedi power project
Sydney-listed Tlou Energy has awarded key contracts related to its Lesedi gas-to-power project in Botswana, it said on April 14.
Contracts have been awarded to Botswana-based Zismo Engineering for the construction of the overhead lines and to South Africa’s OptiPower for the construction of substations, the company said.
The first phase of the project will involve the construction of transmission lines, transformers, a grid connection, electricity generators and potentially the drilling of additional gas wells. The 100-km transmission line will run from the Lesedi coalbed methane (CBM) project to the town of Serowe, where it will connect to the existing power grid. The initial generation is proposed to be up to 2 MW of electricity.
The second phase of the project will see the expansion of electricity generation up to 10 MW. This will involve drilling additional gas wells and the purchase of additional electricity generators.
Tlou said that the transmission line route has been surveyed and full environmental approval is already in place. It plans to raise £2.6mn (US$3.6mn) to fund the project.
The company has development rights to 8,300 km2 of acreage in Botswana which it estimates could contain 90.6bn m3 of gas trapped in coalbeds. The company hopes to pioneer the development of the country's CBM resources as a power source.