Tlou to Expand Botswanan CBM Work
Southern Africa-focused Tlou Energy is looking at expanding activities at its Lesedi coalbed methane (CBM) project in Botswana, it said in a January 28 statement.
The company is planning to purchase land for gas and solar development, preparatory work on transmission line infrastructure, and drilling operations. “Undertaking this work in the near term and in advance of the conclusion of the ongoing discussions in Botswana could facilitate a more rapid development of the project - all subject to funding as well as any pandemic related restrictions that may be in place,” the Sydney-listed company said.
Tlou is seeking funding for the Lesedi gas-to-power project, consisting of two phases with a combined $30mn cost.
The first $10mn phase will involve the construction of transmission lines, transformers, a grid connection, electricity generators and potentially the drilling of additional gas wells, the company said. The 100-km power line will run from the Lesedi 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 2MW of electricity.
The $20mn second phase will expand electricity generation to 10 MW and involve drilling more wells and the purchase of additional electricity generators.
“Funding discussions are progressing well, in particular with Botswana based institutions with which the company is in ongoing discussions,” the company said. Should technical and risk assessments on Tlou's operations be successful, the relevant parties would then seek internal approval to proceed, followed by legal and other due diligence. "If such approval is granted, which is currently expected towards the latter end of Q1 2021, Tlou would then be in a position to announce further details of the proposed deal.”
Tlou wants to expand the project further beyond 10 MW in the future. It signed a pilot power purchase agreement earlier this month to supply Botswana Power Corp with 2 MW of power from the Lesedi project.