Tlou Energy Ltd (AIM:TLOU, ASX:TOU, BSE:TLOU) has awarded the contract for the construction of the grid transmission line to connect the Lesedi power project in Botswana to local contractor Zismo.
Building the overhead line is expected to take approximately 15 months to complete, the company said in a statement.
In addition to the lines, substations will be installed at Lesedi and Serowe, with OptiPower earmarked for this work and a contract expected to be signed nearer to the completion date for the overhead lines.
Tony Gilby, Tlou’s managing director, said: "Commencement of transmission line construction represents a new and exciting phase for the company aimed at delivering on our huge gas-to-power potential and starting the monetisation process for our considerable gas reserves.
“It has taken a long time but what has been achieved to this point is outstanding.
“Having secured the first tranche of BPOPF funds allowing us to get Zismo started on the transmission line we are now progressing additional power off-takers as well as exploring further ways of monetising our enormous gas reserves.
“The existing two production pods continue to flow gas and perform in line with expectations given these are only two pods in a very large basin. Additional wells should assist the dewatering process and result in higher gas flow rates.”