Botala Energy Partners with FFS Refiners for Long-Term LNG Supply Agreement

Botala Energy, an Australian energy company focused on exploration and development opportunities for natural gas and renewables in Botswana, has signed a non-binding term sheet for a long-term liquefied natural gas (LNG) supply agreement with FFS Refiners, a South African hydrocarbon solutions provider.

The partnership aims to leverage Botala’s coal bed methane (CBM) resources from the Serowe wellfield and FFS’s market presence in South Africa to deliver reliable and sustainable energy solutions across the region. A formal gas sales agreement (GSA) detailing pricing mechanisms, delivery schedules, and logistics is expected to be executed by February 28, 2025.

Phased Approach to LNG Distribution

Under the terms of the agreement, LNG from the Serowe wellfield will be transported to industrial and commercial end-users through FFS’s distribution network in a phased approach. Phase 1 will see an initial production and supply of 50 tons per day by 2026, with infrastructure development at the Serowe wellfield. In Phase 2, production capacity is set to quadruple to over 200 tons per day by 2028 through additional wellfield development and midstream investments.

Botala will handle gas production, processing, and LNG logistics from the Serowe wellfield to South Africa, while FFS will manage midstream and downstream operations, including LNG distribution, customer sales, and market expansion strategies.

Building on Recent Partnerships

This agreement follows Botala’s recent partnership with NOVO Energy to address the gas crisis in South Africa. While the NOVO agreement focuses on developing a regional LNG supply chain, the partnership with FFS is geared towards leveraging an established downstream customer base and infrastructure for industrial and commercial sectors.

According to Botala, these agreements enhance its ability to scale production, reach various market segments, and diversify supply to mitigate risks.

Future Plans and Vision

The partners will work on finalizing midstream and downstream infrastructure requirements, explore joint investments to improve supply chain efficiency, and seek to expand the customer base for LNG in various sectors across Southern Africa.

The agreement is conditional upon securing all necessary environmental and operational permits for the Serowe wellfield and associated LNG facilities. Once conditions are met, the term sheet will become a binding agreement, paving the way for phased LNG production and supply to FFS.

CEO Statements

“This agreement with FFS Refiners builds on the increasing momentum and overwhelming interest we’ve received for gas supply from our Serowe CBM Project. South Africa’s looming gas shortage has created a desperate situation for industries seeking reliable and cleaner energy alternatives. Our partnership with FFS allows us to provide a solution that directly addresses this pressing need,” said Kris Martinick, CEO of Botala Energy.

“We are thrilled to partner with Botala to expand our LNG offerings in South Africa. Botala’s Serowe CBM Project can provide a reliable and scalable gas supply, enabling us to meet the growing demand for cleaner energy solutions across industries. This partnership is a key step in achieving our vision of delivering sustainable, cost-effective hydrocarbon solutions to our customers while supporting the region’s energy transition,” added Andrew Canning, CEO of FFS Refiners.