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Tlou reaches new Lesedi gas milestones
BOTSWANA
TLOU Energy has reached another two mile- stones in gas production testing at its Lesedi CBM project in Botswana.
The company said in an update that the Lesedi 4 production pod had successfully reached critical desorption pressure (CDP), meaning that the pressure of gas being produced from the coal is high enough to indicate future production potential.
Meanwhile, work at the Lesedi 3 pod is more advanced, with a short-term gas flow test at Lesedi 3 taking place a er a signi cant gas pres- sure build-up inside the well casing.
The result of this test is considered by the company to represent a positive indication of the pod’s potential. e company hopes that it will soon be able to carry out a similar gas ow test at Lesedi 4.
e news is welcome for Tlou, as it is compet- ing with Botswana CBM developer Sekaname to build a CBM-to-power plant on an independent power producer (IPP) basis.
Tlou has o ered to provide power to the Bot- swana grid for $0.12 per kWh from a 100-MW IPP project, to be built in 10-MW stages.
As well as Lesedi, Tlou also has CBM drilling licences for the Mambai and Boomslang elds.
“We are very pleased to have now reached CDP at both the Lesedi 3 and Lesedi 4 produc- tion pods,” said Tlou managing director Tony Gilby.
“ e short-term gas ow test at Lesedi 3 has
also been positive, and with the primary objec- tive of demonstrating a commercial gas ow rate, we look forward to further testing at both Lesedi 3and4.”
Since the short-term test at Lesedi 3, dewa- tering has continued, with the plan being to hold the water level just above the coal and continue to draw down pressure in the well, allowing gas to ow in a controlled manner. is would ide- ally lead to a long-term gas ow from the Lesedi 3 pod, Tlou said.
Botswana has 190bn cubic metres of eco- nomically recoverable CBM.
The country’s power demand currently stands at 550 MW. In theory the Chinese-built Morupule B power plant can generate 450 MW, but it has only been operating at up to 33% of capacity, meaning that the country has had to import power from South Africa.
Although exploiting CBM and developing a gas-to-power industry would reduce these imports, there are concerns that Botswana’s potential is just too small at up to 100 MW, meaning that the country will struggle to gain access to the cutting-edge technology required.
As well as CBM, the country is investing in solar farms and an extension to the Moropule B power plant in a bid to become self-su cient in electricity. e government plans to support $1.8bn of investment in the power sector to meet up to 500 MW of forecast new demand by 2030.™
GAS-FIRED GENERATION
ENH bides time on financing plans
MOZAMBIQUE
MOZAMBIQUE’S state-owned Empresa Nacional de Hidrocarbonetos (ENH) has pushed back plans to line up nancing for the Mozambique LNG project, which reached nal investment decision (FID) in mid-June. ENH Rovuma Area Um has a 15% stake in the scheme. e company requires $2.3bn for its share of spending.
A report in Bloomberg this week quoted ENH’s CEO, Omar Mitha, as saying it would “go back to the market to seek funding” later this year. is is intended to reduce risk and provide better terms, he said. Advising ENH is lion’s Head Global Partners.
A report from the Lusa press agency quoted Mitha as saying the company intended to borrow from export credit agencies (ECAs) rather than commercial banks.
Mozambique’s nancial situation has su ered as a result of bad loans taken out in 2013-14. It was unable to service these debts and declared default. e expectation is that once a deal has
been reached to get its debts back on track, lend- ers will be more willing to engage with Maputo. Mozambique is in talks on some of its debts, while contesting the legality of other agreements such as the Proindicus sum.
A government representative was quoted by the news report as saying it would provide a guarantee for ENH to raise funds.
Anadarko Petroleum, the US-listed company that is operating Mozambique LNG, noted that each partner was responsible for sourcing its own share of equity nancing.
Mozambique LNG will consist of two LNG trains, with 12.88mn tonnes per year of capacity. Gas for the plant will come from Area 1, which is o shore in the Rovuma Basin. Sales of 11.1mn tpy have been signed for the project, with o akers in Asia and Europe. is liquefac- tion plant will be based at the Afungi LNG Park, also home to the proposed Rovuma LNG. is second plant is anticipated to reach FID this year.
ENH also has a 10% stake in Rovuma LNG.™
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