Tlou Energy selected to re-tender for Botswana power contract

Tlou Energy on Friday told investors that it is one of two companies invited to re-tender for up to 100 megawatts coal-bed-methane fueled power projects in Botswana by the country’s government.

The natural gas company is now set to meet with the Botswanan government to discuss a requested re-tender for the proposed development of up to 100MW of CBM fuelled power plants on 9 August, ahead of a 12 September submission deadline.

Tlou had previously proposed a now-shelved staged development commencing with up to 10MW of generation, and also outlined project feasibility along with plans for field development, the installation of power generation facilities and the supply of power into the grid.

The other company being invited to re-tender was local Botswanan company Sekaname.

Analysts at stockbroker Shore Capital said: “We are now very encouraged to see the formal re-tender process moving ahead and believe that Tlou is superbly positioned in this regard, given the advanced nature of its flagship Lesedi CBM project in Botswana.”

The company said that the Lesedi CBM project is the most advanced project in its portfolio and has seen ongoing operations since 2007.

“We continue to see excellent scope for Tlou to become a leading Southern African-focused independent power producer,” said the analysts.

Tlou Energy’s shares were up 7.85% at 6.26p at 1154 BST.