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    Tlou pens deal for Botswana transmission line


The company secured a $5mn loan to finance construction in December.

by: NGW

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Complimentary, Natural Gas & LNG News, Africa, Gas to Power, Political, Contracts and tenders, News By Country, Botswana

Tlou pens deal for Botswana transmission line

Botswana-focused coalbed methane (CBM) developer Tlou Energy has signed a contract for the construction of a transmission line to link its Lesedi power project to the country's grid, the company reported on March 15.

Lesedi is situated around 100 km from Botswana's grid. Local firm Zismo Engineering has been hired to construct the 66-kV overhead line, which will be capable of supplying 25 MW of power. The work is expected to take 15 months to complete.


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Tlou secured a $5mn loan from Botswana Public Officers Pension Fund (BPOPF) to pay for the construction of the line in December. Two months earlier it also signed a deal to sell 10 MW of electricity from gas produced at Lesedi to Botswana Power.

"Having secured the first tranche of BPOPF funds allowing us to get Zismo started on the transmission line, we are now progressing additional power off-takers as well as exploring further ways of monetising our enormous gas reserves," Tlou managing director Tony Gilby said in a statement.

Tlou estimates the CBM project to hold 252bn ft3 (7.1bn m3) of proven, probable and possible gas reserves.