Botala reports 42% increase in resources for Botswana CBM project
Australia’s Botala Energy announced on July 8 a 42% increase in the 2C contingent resources within its 100% owned Serowe coalbed methane (CBM) project in Botswana, raising the figure to 454bn ft3 following the latest independent recertification.
This increase is attributed to exploration and improved mapping techniques that have enhanced the understanding of CBM potential in Botswana, the company stated. The new low estimate of 363bn ft3 is higher than the previous best-case estimate of 317bn ft3.
“This CBM resource upgrade comes at a crucial time when the Southern African region is facing a looming gas shortage, as forecast by Sasol for 2026,” Botala Energy said. “The strategic location and the substantial increase in 2C contingent resources place Botala in an excellent position to contribute significantly to gas and general energy security in Botswana and Southern Africa.”
2C contingent resources are important because they show potential future value. They are not yet considered proven reserves and therefore can't be counted on for immediate production. They provide a reliable indication of how much gas might be available when certain conditions such as successful testing, securing financing, confirming market demand, and obtaining regulatory approvals, are met.
Commenting on the local gas market, Botala noted that Southern Africa gas shortfall stems from a combination of depleting gas reserves and increasing demand across the region. Key existing suppliers, such as South Africa's state-owned Sasol, have publicly announced they will have to cease supply to traders and industrial users by mid-2026 due to depletion of their gas reserves in Mozambique and a strategic shift to retain more gas output for their own operations.
The gas shortage threatens to disrupt industrial operations, power generation, and domestic energy supply, with possible severe economic and social consequences, Botala said. South Africa's manufacturing sector, which in 2023 employed around 1.5mn people and contributed 11.4% towards the overall GDP, is particularly vulnerable. Key industries such as steel, aluminium, mining, agriculture, paper, glass, ceramics, construction, automotive, and food and beverage could face severe disruptions.
Botala said that its CBM resources provide a viable solution to this impending gas shortfall. The key market entry points for Botala’s gas include local LNG consumption, power generation, industrial use, and customers within the Southern African Power Pool (SAPP).
Earlier this year, Botala received environmental approval for the commercial development of its Serowe project, also known as the Naledi CBM project.
The development of the CBM project includes the establishment of wellheads, a gas gathering network, a central processing facility, and a gas supply system to a proposed 20MW gas/solar hybrid pilot in Serowe, which is currently in advanced planning.