Tlou Energy Limited (ASX:TOU) Reports Nearing Completion of Lesedi Substation
Substation Completion Status
Tlou Energy Limited (ASX:TOU) reports that its Lesedi substation is approximately 90% complete, with a 5MVA transformer delivered on 20 November 2024. The transformer is a key component expected to facilitate around 5MW of generation. Final completion of the substation is anticipated before the end of the year.
Gas Production and Challenges
Gas production from the Lesedi 4 and Lesedi 6 gas wells is ongoing, although there are challenges related to coal fines obstructing the downhole pump. Tlou’s operations team is prioritising resolving these issues to enhance gas flow consistency required for power generation.
Gas Reserves Certified
Tlou’s gas reserves have been independently certified by SRK Consulting, indicating 2P Reserves of 40.8 Billion Cubic Feet (BCF), equating to approximately 6.8 million barrels of oil. The Company’s 3P Reserves stand at 426.6 BCF.
Transmission Line Progress
The 66kV transmission line linking Lesedi to the Serowe substation is nearly complete and will support a maximum capacity of 25MW. Minor works remain, including the installation of switchgear prior to energisation.
Future Generation Plans
Discussions are underway with a global power generation supplier to install Cummins gas engines and GE generators at Lesedi. Initial power generation is slated for mid-2025, beginning with 2MW, scaling to 10MW in line with the existing Power Purchase Agreement (PPA) with Botswana Power Corporation. The PPA is initially for five years, with potential extensions for increased capacity.
CEO Comments
Mr Tony Gilby, Managing Director of Tlou Energy, stated, “Reliable energy is in short supply in the region, and Tlou is ideally placed to meet this growing electricity demand as new projects are needed to provide consistent baseload power.”
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