Botswana Procurement News Notice - 41224


Procurement News Notice

PNN 41224
Work Detail A new phase of drilling has begun at the Lesedi Gas-to-Power Project in Botswana. In the second week of April 2023, the Australian company Tlou Energy began the work on Lesedi 6 gas production pod. The latter is located to the southwest and parallel to the existing Lesedi 4 gas production pod. As of the 13th date of April 2023, the Lesedi 6 gas production pod had reached a depth of approximately 59m. Eventually, the pod will comprise one vertical production well intersected by two lateral wells. The latter will be drilled horizontally through the target reservoir section for several hundred meters. Once the drilling phase is completed, dewatering will commence and thereafter the well will start to establish an indicative gas flow rate. Noteworthy, Lesedi 6 gas production pod is the first well of a proposed drilling program to expand gas production at the Lesedi Gas-to-Power Project in Botswana. Gas flows from this pod will be converted to electricity. The electricity will be supplied to the Botswana Power Corporation (BPC) under an existing 10MW Power Purchase Agreement (PPA). New transmission lines, substations, and associated electrical infrastructure are being put in place for this purpose. Background of the Lesedi Gas-to-Power Project in Botswana The Lesedi Power Project is a gas-to-power project located in Botswana’s Central District, some 100 kilometers from the existing power infrastructure. Tlou Energy said that the financing that will be obtained will be used to carry out the project in two phases. The first of which will produce approximately 2 MW of electricity will require an investment, while the second phase with a projected capacity of 10 MW will cost US$ 20M. Phase one of the project which is estimated to cost about US$ 10M involves transmission line construction, transformer installation, grid connection, procurement and installation of electricity generators, and potentially the drilling of additional gas wells. The said transmission line will run from the Lesedi project to the town of Serowe, a distance of about 100 Km, where it will connect to the existing power grid. This phase will produce approximately 2 MW of electricity. The 2nd Phase mainly aims to increase the initial electricity production to 10MW and it will involve the drilling of more gas wells as well as the purchase of additional generators. The cost of this phase is approximately US$ 20M. Upon successful completion of phases one and two, the company plans to expand the project beyond 10MW. This expansion is expected to be completed using project revenues and debt.
Country Botswana , Southern Africa
Industry Construction
Entry Date 17 Apr 2023
Source https://constructionreviewonline.com/project-timelines/botswanas-lesedi-power-project-update/

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