Firm seeks $700m for coal-bed methane production

Source: Firm seeks $700m for coal-bed methane production | Herald (Business)

One of the three firms granted a coal-bed methane concession by Government in Lupane, Matabeleland North Province, Discovery Investments, has said it required about $700 million to start commercial gas production.

The company, whose concession is in the Siwale area in Mzola, Lupane has already completed exploration and was issued with an Environmental Impact Assessment certificate. Discovery Investments managing director Thabani Hove said the project had reached production stage, but extraction would only start after securing funding.

“Our Lupane Gas project is now at a stage to start production. We are very grateful to the new government that has now created an enabling environment for us to now aggressively start looking for investors,” he said.

We are looking for about $700 million (to commence production).”

Mr Hove said from initial projections, the gas could be exploited over a period of 50 years. In an era where gas is now a key commodity in the country, Zimbabwe could benefit immensely from the exploitation of the gas.

The appetite for gas consumption is growing in the country with the Zimbabwe Energy Regulatory Authority saying the country has recorded a significant rise in household consumption of liquefied petroleum gas in recent years. Through exploitation of coal-bed methane gas, analysts contend Zimbabwe could turn from a net importer of fertilizers to a net exporter, which would help preserve hard currency.

Coal-bed methane gas is used to produce hydrogen, which in turn is used in the manufacture of fertiliser. Fertiliser maker, Sable Chemicals, has also hinted on plans to transform its current electricity-based production process to gas. — New Ziana.

COMMENTS

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    Why would I give you US$ 700 million and hope you might give it back to me Comrade Hove ?
    Zimbabwe is known to fleece investors by changing the rules constantly.Why should i trust you now comrade ?

    In football it is known as moving the goal posts while the game is being played. Zimbabweans might understand it better with that analogy