US and Canada firms win a new gas exploration in DR Congo

NAIROBI, Kenya - In a bid to expand energy access and strengthen international partnerships, the Democratic Republic of Congo (DRC) has awarded licenses for the exploration of three natural gas blocks in Lake Kivu to companies from the United States and Canada.

The country’s Hydrocarbons Ministry announced that US-based developer Symbion Power’s local subsidiary, RED, will be taking on the Makelele oil block, while the Idjwi block has been granted to another American company, Winds Exploration and Production LLC.

While the Canada-based Alfajiri Energy will be responsible for the Lwandjofu block. The awarding of these licenses is part of a larger licensing round that includes 27 onshore oil blocks, some of which are located in the Congo’s rainforest and peatlands, raising concerns about potential environmental impacts.

The development aligns with the DRC’s goal to grow its energy access from 10% of the population to 32% by 2030. The DRC hopes to tap into the vast amounts of methane underneath Lake Kivu to generate electricity, similar to its neighbor Rwanda.

The lake is estimated to hold enough methane to produce 700 Megawatts of electricity in the next 50 years, and it is projected that production could begin as early as 2024.

Production-sharing contracts are set to be signed within the next 15 days, marking a significant step forward in the DRC’s relationship with the United States and Canada in the energy sector.

Paul Hinks-Symbion Power's CEO the media that production next year could be possible "if everything goes well."He further added the process required tapping gas that is saturated in lake water more than 400 meters below the surface.

The gas block auction was part of a licensing round that included 27 onshore oil blocks. Some of the oil blocks were in Congo’s rainforest and peatlands, raising environmental concerns.

Previous efforts by the Congolese government to boost output beyond the roughly 25,000 barrels per day it has long produced along its Atlantic coast have run into logistical challenges, environmental and political risks, and regulatory uncertainty in the sector.

Government data reveals that the country has 22 billion barrels of crude reserves and it is targeting production of 200,000 barrels per day.

GAROWE ONLINE