Botswana's Tlou Renews GE Accord

AIM- and Australia-listed coalbed methane (CBM) developer Tlou Energy said August 23 it has renewed its co-operation agreement – first signed in April 2015 – with US giant turbine-maker General Electric and IK Holdings, an Australian firm set up to develop new sources of gas-fired power in Botswana. 

The agreement provides the framework relating to sharing of infrastructure and technical support for the delivery of a new 50-MW power generation facility for which Tlou was approved last month by the Botswanan government to negotiate gas supply, construction and operation; gas supply to the existing 90-MW Orapa power station owned by Botswana Power Corporation; and a proposed 300-MW gas-fired project to be developed by IK and GE. 

Map showing the Lesedi CBM project permits and the proposed sites for a 50-MW and later a 300-MW power plant plus a 90-MW existing plant that could convert from imported diesel to CBM (Map credit: Tlou Energy)

The agreement expires November 30 2016 and may be terminated at any time by any party. Tlou notes that IK Holdings' directors have been prequalified by the Botswanan energy ministry to tender an offer to develop the 300-MW project – the only gas-fuelled solution thus prequalified. 

Tlou has ten licences covering 8,300 km²; its Lesedi project has independently certified contingent CBM resources of 3.3 trillion ft³.

Botswana relies on diesel generators or expensive imported power, so in late 2015 it tendered for at least 10 MW of generation capacity and this year asked Tlou to develop an initial 50-MW new CBM-fuelled plant.

Mark Smedley