Tlou Energy has renewed its co-operation agreement with General Electric International (GE) and IK Holdings for the delivery of a gas-to-power project in Botswana.
The agreement covers the framework for co-operation between the three companies in relation to sharing of infrastructure and technical support for the delivery of three power projects in Botswana.
This includes a new 50 MW power plant for which Tlou has received approval from the Botswana government to negotiate gas supply, construction and operation, as well as the gas supply to the existing 90 MW Orapa power plant, which is owned by Botswana Power Corp.
The co-operation agreement also covers the proposed 300 MW gas-fired power project to be developed by GE and IK Holdings.
Tlou Energy is developing the Lesedi coalbed methane (CBM) project and is currently on target to book the first company in Botswana to book certified gas reserves. The company aims to supply CBM-to-power projects to fill a current generation gap that has left Botswana reliant on expensive power imports and diesel-fired generation.
The co-operation agreement with GE and IK Holdings will expire on 30 November 2016. It does not bind any party to enter into formal commercial arrangements, but provides a framework for co-operation to finalise the respective project tender processes and approvals, as well as the roles and commercial outcomes for each party.