Botala and NOVO Energy Partner to Address Southern Africa’s Looming Gas Shortage. In a decisive move to mitigate Southern Africa’s growing energy crisis, Botala Energy Ltd has signed a non-binding Memorandum of Understanding (MoU) with NOVO Energy (Pty) Ltd, a key player in the region’s gas distribution sector. The agreement paves the way for commercial Liquefied Natural Gas (LNG) production from Botala’s Serowe Wellfield in Botswana, positioning it as a critical supplier amid an impending gas shortage.
Southern Africa, particularly South Africa, is bracing for a severe natural gas shortfall—commonly referred to as the “gas cliff”—expected to hit by mid-2027. As industries scramble for alternative sources, the partnership between Botala and NOVO offers a quick-to-market solution by leveraging Botswana’s coal bed methane (CBM) resources and NOVO’s established infrastructure in South Africa.
The agreement outlines NOVO’s role as a primary off-taker and distributor of LNG produced from the Serowe Wellfield. The companies plan to develop a regional LNG supply chain, ensuring that key markets in Botswana, Johannesburg/Gauteng, Durban, and beyond have access to a stable and clean energy source.
LNG is increasingly seen as a viable alternative due to its clean-burning properties, efficiency, and transportability—especially in areas with limited or no pipeline infrastructure. This project is set to support industries reliant on gas, ensuring they remain operational despite supply disruptions.
Kris Martinick, CEO of Botala Energy, highlighted the strategic importance of this partnership.“With many industries seeking alternative gas sources to mitigate the looming supply gap, this MoU positions Botala at the forefront of providing a solution,” said Martinick. “NOVO’s expertise in gas distribution, combined with our Serowe CBM resources, will enable us to rapidly scale LNG production and deliver clean, reliable energy across the region.”
With demand for LNG rising, Botala and NOVO are committed to establishing a long-term gas supply chain, ensuring energy resilience for the region.
