Dutch firm assessing CBM deposits
Pauline Dikuelo | Tuesday June 3, 2014 10:38
The engagement of the Dutch company is part of the broader coal road map strategy, which seeks to develop a plan for the monetisation of between 30 trillion to 40 trillion cubic feet of CBM gas deposits in Botswana.
The World Bank will fund NSA.
“The CBM gas development strategy forms part of the coal roadmap which was launched in January 2012. This road map was formulated as part of the work done for the Ministry by Wood Mackenzie in 2011. NSA is tasked with assessing the country’s available resources,” the ministry’s principal public relations officer, Potso Thari told Mmegi Business.
The project is expected to formulate a strategy on how the country can sustainably develop the CBM gas industry as well as diversify the mineral revenue base, the economy and monetising the coal resources in Botswana.
Majors active in the Botswana gas basin include Tlou Energy, Sasol, Origin and Exxaro Resources.
Thari said the current laws on environment and minerals would ensure that firms exploring the CBM do not use the dangerous fracking method for exploration.
The ministry is also soon expected to float a request for expressions of interest to supply gas to Orapa 90 MW peaking plant power station. The power station is a dual fuel open cycle gas turbines currently operating on diesel and capable to be converted to gas at a later stage, once commercial production is achieved.
Early this year, MMEWR deputy permanent secretary, Nchidzi Mmolawa told an unconventional gas projects workshop in Gaborone that the ministry would this year float a tender to substitute the expensive diesel generation with CBM gas.
Nchidzi stated that there are two local companies at an advanced stage that can supply gas to the Orapa station.
The Orapa power station consumes diesel valued at P2.2 million in each 10-hour run cycle. The other emergency plant, the 70MW plant at Matshelagabedi, is estimated to have similar costs as well as additional charges for actual and available capacity from its owner, APR Energy.
Some estimates suggest a conversion to CBM would lower Orapa’s unit costs by up to 60 percent. Last month, Australian firm Tlou announced that it was nearing gas production at its Lesedi deposit in the central district. The company said that its Lesedi and Selemo deposit have now displayed evidence of first gas breakthrough.
“The Selemo pod has seen casing pressure increase steadily over the past week. Tlou is encouraged by the build- up of casing pressure at Selemo and expects, based on the continued build-up of gas pressure, that the pilot should start flowing gas in the near future,” the company said in a statement.
Tlou added that it is progressing with downstream gas marketing initiatives in the background while the focus of activities remains on the dewatering process.
The Lesedi CBM project’s prospecting licenses extend for approximately 3,800 square kilometres in the Karoo Kalahari Basin, in southeastern Botswana.