- MoU signed with leading Southern African gas distributor
- Strategic partnership to develop a regional gas supply chain to address shortages
- Fast-tracking commercial LNG production
- Leveraging NOVO’s established gas infrastructure
Botala Energy Ltd has announced the successful execution of a non-binding Memorandum of Understanding (MoU) with NOVO Energy (Pty) Ltd, a leading Southern African gas distributor.
This partnership marks a significant step toward commercial gas production from Botala’s Serowe Wellfield in Botswana.
The MoU focuses on addressing Southern Africa’s growing 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 deliver a quick-to-market solution to meet the region’s gas needs, particularly in light of South Africa’s anticipated gas shortage from mid-2027. Southern Africa, and especially South Africa, faces an impending gas shortage commonly referred to as the “gas cliff.” This looming supply gap has created an urgent need for alternative gas sources to ensure energy security for industries across the region, particularly in the greater Johannesburg/Gauteng region and extending to Durban.
Botala’s Serowe Wellfield offers a significant opportunity to address a portion of this gap through the production of Liquefied Natural Gas (LNG). LNG is a clean, efficient, and flexible energy solution that can be transported to areas with limited or no pipeline infrastructure. The partnership between Botala and NOVO aims to develop a regional LNG supply chain to serve key markets in Botswana and other parts of Southern Africa.
Under the terms of the MoU, NOVO will act as a primary off-taker and distributor of LNG from Botala’s Serowe Wellfield and related LNG production facilities. The agreement also highlights the potential for expanding LNG production to meet growing demand and develop additional gas markets across Southern Africa.
Kris Martinick, CEO of Botala, acknowledged the urgency of the situation.
“With many industries seeking alternative gas sources to mitigate the looming supply gap, this MoU positions Botala at the forefront of providing a solution,” Martinick said. He added, “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.”
Martinick also emphasised the broader implications of the partnership. “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,” he said.
The execution of the MoU represents the beginning of a critical phase for Botala and NOVO. The companies will now work toward finalising a binding Gas Sales Agreement (GSA) and commencing LNG production from the Serowe Wellfield.
Once operational, this partnership is expected to generate early cash flows for Botala, strengthen regional energy security, and provide a sustainable and reliable gas supply to Southern Africa from gas exported from Botswana.
Botala believes there is an urgent need for LNG and remains committed to working with NOVO to establish a reliable and scalable supply chain to meet the region’s growing demand.
