Tlou Energy Inks Gas Sales Deal With South Africa's CNG Holdings

Africa focused Tlou Energy has entered into a gas sales co-operation agreement with CNG Holdings (Pty) Ltd, a South African based company which supplies compressed natural gas (CNG) to industrial users and vehicle fleets.

Sale of gas by Tlou Energy to CNG Holdings will be for compression, transport and on-sale of CNG to industrial customers in Botswana and South Africa via road transport.

CNG Holdings has developed a significant CNG business in South Africa selling natural gas as CNG to industrial customers and vehicle fleets. CNG Holdings is seeking to expand its business into other markets.

“This is an important milestone for Tlou Energy in forming a partnership with CNG Holdings which is currently supplying gas to industrial customers in South Africa where there is a substantial lack of access to natural gas due to pipeline network constraints. Together we are looking to replicate this success and business model in developing the gas market in Botswana. The partnership of Tlou Energy (with its significant gas resource and upstream experience) and CNG Holdings (with its expertise in CNG logistics and gas sales to industrial customers) represents an exciting opportunity to commercialise gas in Botswana,” Tlou Energy Managing Director, Tony Gilby said.