Rwanda’s Mines, Petroleum and Gas Board and the Rwanda Development Board has signed a seven-year deal with Gasmeth Energy for the extraction of methane gas from Lake Kivu.
Through the $400 million agreement, Gasmeth Energy will finance, construct and maintain the extraction, processing and compression of the project.
Forming part of the country’s efforts to cut down on its natural gas import bill, the deal will see Gasmeth Energy extract and separate methane gas from water and transport it to an onshore plant, where it will be compressed.
The compressed natural gas will then be distributed to local and international markets.
The project will also reduce the country’s dependence on coal and wood and contribute to the Rwanda’s move to cleaner energy.
“We expect that people can use gas instead of charcoal, the same with industries like tea factories instead of using firewood, they use gas. It is part of our green agenda,” says Clare Akamanzi, CEO of the Rwanda Development Board.
The project will reportedly create employment opportunities for up to 800 people during the construction phase and 400 thereafter.