Like a thirsty athlete cracking open a can of Red Bull, Botala Energy has received a timely boost at its Serowe Coal Bed Methane (CBM) project, after confirming resources at the site run far deeper than first thought.
An independent recertification by American energy consulting firm, Sproule, estimates there to be a potential 454 billion cubic feet of CBM rather than 317 billion as was initially estimated.
This 42 percent increase strengthens the project’s possibilities and positions the Australian-based power producer as a future key player in the energy sector in Southern Africa.
It leaves Botala perfectly placed to address the region’s looming energy deficits, with a severe gas supply shortage expected from 2026.
With Botswana’s energy mix dominated by coal fired power generation, there have been some efforts in trying to ensure reliable supply of electricity. The decline in production at Eskom, which in turn reduced its electricity exports, has strained the whole region resulting in power outages and shortages.
It is hoped Botala, with its abundant gas reserves, can provide an alternative from its gas to power electricity generation.
Botala Energy’s Chief Executive Officer (CEO), Kris Martinick, is confident they can.
“I am thrilled by the significant increase in our contingent resources and the vast potential of our coal bed methane project in Botswana to supply gas to energy hungry Southern Africa, especially the nearby industrial heart land of South Africa. This development further positions Botala as a key player in the Southern African gas market and aligns with our vision to address the region’s energy needs. We are well positioned to capitalise on this opportunity, and I look forward to the encouraging gas flow-rate investigations and negotiations with potential partners and customers delivering value to our shareholders,” said Martinick.
With gas being the cheapest source of energy, a severe shortage is envisioned within the next two years due to dwindling gas reserves plus increased demand in the region.
South Africa’s supplier Sasol has already announced cutting down production of natural gas in 2026 due to depletion of their gas reserves in Mozambique.
Therefore Botala’s substantial CBM resources provide a viable solution to this impending gas shortfall with potential for liquefied natural gas consumption, power generation, industrial use, and customers within the Southern African Power Pool (SAPP).
