- Botala Energy Ltd has announced the successful execution of a non-binding Memorandum of Understanding (MoU) to jointly develop an LNG supply chain with NOVO Energy.
- The MoU outlines the potential for expanding LNG production to meet growing demand and develop additional gas markets across Southern Africa.
Botala Energy Ltd has announced the successful execution of a non-binding Memorandum of Understanding (MoU) to jointly develop an LNG supply chain with NOVO Energy (Pty) Ltd, a leading Southern African gas distributor.
The MoU partnership seeks to address the region’s increasing demand for natural gas by utilising Botala’s coal bed methane (CBM) resources in Botswana and NOVO’s established infrastructure and distribution network in South Africa.
The collaboration aims to provide a quick-to-market solution to Southern Africa’s gas requirements, particularly South Africa‘s anticipated gas shortage from mid-2027. Under the terms of the MoU, NOVO will act as a key off-taker and distributor of LNG from Botala’s Serowe Wellfield and related LNG production facilities.
The MoU outlines the potential for expanding LNG production to meet growing demand and develop additional gas markets across Southern Africa.
Kris Martinick, CEO of Botala, said, “This partnership with NOVO Energy is a game-changer for Botala and for the entire Southern African energy landscape. The anticipated ‘gas cliff’ in 2027, as highlighted by SASOL, has sparked overwhelming interest from gas off-takers across the region.
“With many industries seeking alternative gas sources to mitigate the looming supply gap, this MoU positions Botala at the forefront of providing a solution. NOVO‘s significant expertise in gas distribution and established customer base, combined with our Serowe CBM resources, will allow us to rapidly scale LNG production and deliver clean, reliable energy to key markets in Botswana and Southern Africa.
“This is more than just a supply agreement – it’s about creating a sustainable energy future and providing a vital energy lifeline to industries desperate for solutions. We are incredibly excited by the off-take discussions we’ve had. It’s clear that there’s an urgent need for LNG, and we’re committed to working with NOVO to deliver a reliable and scalable supply chain to meet that demand.”