Rwanda Development Board, Gasmeth Energy sign $400m deal to extract methane gas

Rwanda Development Board has recently ventured into an agreement with Gasmeth Energy Limited to make way for the latter in extracting and processing methane gas from Lake Kivu.

Gasmeth Energy Limited has committed to pumping out a gargantuan amount of USD 400 million in the construction and maintenance of a gas extraction plant, processing and compression project in Lake Kivu. The firm signed an agreement to the effect with the government through Rwanda Mines, Petroleum and Gas Board and Rwanda Development Board, The New Times reported.

The aim of Gasmeth Energy is to finance, construct and maintain a gas extraction, processing and compression project. The overall project will include a gas extraction plant on Lake Kivu, where Gasmeth Energy is supposed to extract and separate methane gas from water and thereafter transport it to an onshore plant where they will compress it. Then the compressed natural gas will be distributed on both the local and international market. The investment of over USD 400 million is likely to generate more employment for between 600 to 800 people during the construction phase and 400 employees after construction.

“Natural gas is the most environmentally friendly fossil fuel. The natural gas produced by the plant will help reduce the use of wood and charcoal as a cooking fuel as well as diesel fuel in the automotive industry,” Clare Akamanzi, CEO of Rwanda Development Board opined.

The methane in Lake Kivu is estimated to have the capacity to generate 700 MW of electricity over a period of 55 years. The deep water of Lake Kivu contains dissolved methane and carbon dioxide, Taarifa noted.