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Botala Energy, an Australian energy company focused on exploration and development opportunities for natural gas and renewables in Botswana, has signed a non-binding term sheet for a long-term liquefied natural gas (LNG) supply agreement with FFS Refiners, a South African hydrocarbon solutions provider. According to Botala, this partnership will leverage its coal bed methane (CBM) resources from the Serowe wellfield and FFS’s market presence in South Africa to deliver reliable and sustainable energy solutions across the region. A formal gas sales agreement (GSA) detailing pricing mechanisms, delivery schedules, and logistics is expected to be executed by February 28, 2025. Under the term sheet, the LNG from Serowe will be transported to industrial and commercial end-users through FFS’s distribution network in a phased approach. Phase 1 will entail an initial production and supply of 50 tons per day by 2026, supported by infrastructure development at the Serowe wellfield. In Phase 2, production capacity is set to quadruple to over 200 tons per day by 2028 through additional wellfield development and midstream investments. Botala will be responsible for gas production, processing, and LNG logistics from the Serowe wellfield to South Africa, while FFS will manage midstream and downstream operations, including LNG distribution, customer sales, and market expansion strategies. The deal follows Botala’s recent partnership with NOVO Energy to address the looming gas crisis in South Africa. While the NOVO agreement focuses on developing a regional LNG supply chain with an emphasis on midstream logistics and distribution to a broad range of markets, the FFS partnership is envisaged to leverage an established downstream customer base and infrastructure tailored for industrial and commercial sectors. |
