Tlou Energy has entered into a gas sales co-operation agreement with CNG Holdings (Pty) Ltd, a South African based company which supplies compressed natural gas (CNG) to industrial users and vehicle fleets.
The Agreement provides the framework for delivery of the following commercial arrangements between the parties:
◦Proof of Concept Project - Tlou Energy's proposed gas to power (GTP) project to supply local power generation from pilot well ramp up gas (including supply of power to a nearby village and excess power to the local grid);
◦Additional GTP Projects - Expansion of the proof of concept GTP project to supply up to 30 megawatts per annum of power generation (requiring approximately 2 petajoules of gas per annum) either to the local grid or directly to industrial customers in Botswana; and
2.Gas Sales Agreements:
◦Sale of gas by Tlou Energy to CNG Holdings (or nominated subsidiaries) for compression, transport and on-sale of CNG to industrial customers in Botswana and South Africa via road transport.