KEB AND CBM IN BOTSWANA – SOME HIGHLIGHTS
Botswana imports all the liquid fuel used in the country and imports a significant percentage of its electricity requirements. The country is also highly dependent on its diamond industry.
These are some of the reasons that CBM in Botswana is highly strategic, as an alternative energy source and industrial feedstock to build a more diversified economy.
KEB recognised this need for a new clean energy source in the region and has been working together with the Botswana Government in unlocking CBM for the benefit of the country.
Since 2000, Kalahari Energy Botswana has been developing CBM opportunities in Botswana. After nearly two decades of steady exploration and evaluation significant progress has been made. The highlights below illustrate the progress made.
2000
Exploration
The first coal bed methane exploration licences were acquired by KEB in 2000 from those relinquished by ISCOR, South Africa. Initial exploration in the Sojwe / Kodibeleng area showed positive gas saturations; leading the Botswana Government independently undertaking its own study. This study indicated a substantial amount of “gas-in-place” in the coal and carbonaceous sequences of the Central Kalahari Karoo Basin.
Subsequent work was done resulting in:
- Creation of a well log and database;
- A more detailed geologic model of the subsurface in the eastern part of the Central Kalahari Karoo Basin;
- The identification and promotion of markets for the gas;
- The establishment of a local company with the capabilities to precipitate the fledgling CBM industry;
- Started workforce training;
- The first five-well demonstration facility with a view to ascertaining production rates.
2005-2007
Funding
By 2005 the exploration work had led to the American Overseas Private Investment Corporation providing $8,5m investment guarantee to the Kalahari Gas Corporation in order to acquire appropriate well-service plant as well as training to establish a fully Botswana based and owned CBM well-service company.
A team of officials from the Ministry and the Botswana Power Corporation were hosted in the United States in 2005 to learn more about the CBM technology and the opportunity.
In 2006 Capital was raised from institutional and individual investors in Australia, Luxembourg, South Africa and UK.
2008-2015
Further Activities
- New state of the art drilling rig (RD20) is delivered, commissioned and commences drilling.
- 5-Spot array of wells completed, demonstrating strong gas flows.
- Endorsement from Dept. of Energy Affairs to pilot the provision of natural gas to Government schools in rural villages.
- Independent Resource Certification. In 2015, ARI issued an independent resource statement which concluded that less than 10% of the calculated resource would fuel a 350MW power plant for 25 years.
2016
Bidding for 100MW Power Station
In 2016, Kalahari Energy was shortlisted by the Ministry of Mineral Resources, Green Technology and Energy Security to tender for a CBM fuelled power plant in Botswana. The bid was submitted in 2017. The first round tender evaluation process was delayed and a second round of bidding opened in 2018 to which Kalahari also responded.
Sekaname received notification from PPADB of preferred bidder status for its 97MW CBM-fuelled power plant in May 2019.
For more details on the 100MW power station project follow this link
After 2019
The future
Kalahari Energy is the only company in Botswana dedicated entirely to commercialising the coal bed methane resources in the region. Our first prospecting activities started almost 20 years ago. Our vision to develop the CBM reserves for Botswana goes beyond power generation to include CNG (compressed natural gas) and LNG (liquid natural gas); as well as related energy derivatives to serve the transport, hospitality, agriculture, manufacturing industries and more.