Hon. Lefoko Moagi tours Tlou Energy Gas Production Site
On Saturday, the Minister of Minerals Resources, Green Technology and Energy Security Honorable Minister Lefoko Moagi undertook a site visit of Tlou Energy’s Lesedi Power Project.
The objective of the tour was for the Minister and his team to familiarize themselves with the huge developments made by Tlou Energy since inception of the project.
The Lesedi Power Project aims to generate electricity from both gas and solar power for sale into the Botswana Power Corporation ( BPC) grid. Once local power demand is met there is potential to supply power to other countries through the Southern African Power Pool.
The initial phase of development at the Lesedi project is to produce up to 10MW of power with significant expansion planned thereafter. The gas being produced can be fed into a central processing facility to be converted into electricity and sold into the grid. Power production by a local company such as Tlou Energy can reduce the need for Botswana to buy power from neighboring countries while also creating local employment.
The Minister revealed that he has always had a great interest in the project and wanted to visit the site to witness for himself the progress made by Tlou Energy. He expressed joy at the opportunity afforded him to be part of this project, which can bring great change to the region.
“Where we are right now, stands one of their gas production wells. This well has been consistently producing gas since April 2019” stated Minister Moagi, while also commenting that “This shows that indeed Botswana has huge gas reserves.”
Minister Moagi discussed the need for Tlou Energy to be facilitated to develop their power station where the gas will be used for generating electricity. He explained that Tlou Energy will construct a transmission line from their site to the BPC substation in Serowe where they will connect it to the regional electricity grid. “This will be a 66kV line which will be stepped down to 11kV to accommodate BPC. I am elated that all the research shows that there is progress here.” He said that as a result, they are motivated as the Government to assist Tlou Energy in any way possible to help them reach their objectives. He also pointed out the CBM project must be given a chance to be part of the Integrated Resource Plan ( IRP) which has been approved by the Cabinet.
Tlou Energy Executive Director Gabaake Gabaake made a presentation to the Minister and his team outlining the project success to date, geological features of the area and details of gas flows from the Lesedi project.
According to Mr Gabaake, the company has been operating since 2009. “We took over the licences from the previous operator in 2009. At the present moment we have conclusive evidence that there
a huge gas reserve as evidenced by the gas burning. From the geological graphs I showed earlier, there is a clear trend that the flow rate is increasing.” Gabaake said they are very positive that their wells are going to produce a significant amount of gas. He revealed that they have made progress by acquiring a mining licence. He added that even the environmental approvals are in place to commence both gas and solar development. They are now looking to engage financiers to facilitate the building of the transmission line to BPC’s Serowe substation. The potential return for investors could be very significant and a number of local institutions are interested in providing the funds for the project.
He praised Minister Moagi for always availing himself to Tlou Energy. “The Minister has been very helpful. Ever since he came to the Ministry, we have made significant progress. He is the first Minister to actually set foot here.”
Gabaake pointed out that if their plans materialize in the manner they have envisaged, then Botswana is going to benefit immensely. “Gas in most countries is really a fuel for industrialization, because once we have gas it opens opportunities for a number of other industrial processes. You can produce liquid fuels, chemicals, fertilizers, electricity or even bottle and sell the gas to homes to replace the one we are importing from South Africa. The jobs that the gas can create are not only direct but also indirect. So we are very optimistic that once we start, we are going to see growth in terms of the industry as well as seeing other activities starting to take off. Also access to power has the potential to significantly increase output from local farms.”
Kgosi Keoganne Modisapudi of Moralane confidently pointed out that Tlou Energy project is going to benefit his community. “I anticipate employment opportunities will be created by this project. Also, those offered work by the company will seek rented accommodation from our village. This will boost our local economy.” He said for the past three years he has had fruitful meetings with Tlou Energy on how to kickstart commercial sheep production in our area. “This can turn our area into an international mutton hub. Tlou Energy has even promised to help us access the international market” he added.
Kgosi Gofaone Khukhwane of Kodibeleng echoed the same sentiments as her counterpart from Moralane. She expressed joy that four individuals from her village are already employed by Tlou Energy. “I believe they will continue to hire more from our village especially the youth who are the most affected by the unemployment crisis in Botswana.“
The entourage also visited the BPC substation in Serowe. Tlou Energy is looking forward to a successful long- term future bringing local power and sustainable employment to Botswana.