Rwanda signs a $400 million deal with Gasmeth Energy to produce methane gas from one of Africa’s most famous Killer Lakes. Project presents country’s green agenda, says Rwanda Development Board.
In an environmentally significant move, Rwanda government has signed a multi-million dollar deal to produce methane gas from Africa’s “Killer Lake,” the country announced on Tuesday. The $400 million deal was signed between Rwanda government and Gasmeth Energy, a firm owned by US and Nigerian capitalists.
The extraction project is going produce bottled fuel for domestic as well as industrial use. As per the reports, Gasmeth Energy would be the single entity to finance, build and maintain the extraction, processing and compression plant.
Lake Kivu, one of African Great Lakes, is situated in the volcanic regions on the border of Rwanda and Democratic Republic of Congo. As per recent revelations, the lake contains about 55 billion cubic metres of dissolved biogas at a depth of 300 metres. With a potential to release dense clouds of methane, the lake remains to be a constant cause of worry for the people living along the shores.
Signed for seven years, the deal would also help Rwanda in reducing the country’s reliance on wood and charcoal, said Clare Akamanzi, chief executive of the Rwanda Development Board, while speaking to the media. The land-locked east African country is hoping to cut the cost of household fuel for its 12 million people by increasing the production of bottled gas. Currently, the country is spending exorbitant amount of money on importing gas from other African nations, like Tanzania and Kenya.
Akamanzi further said, “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’s part of our green agenda.”
The bottled gas is expected to be released in both domestic and international markets, though no revelations on the pricing has been made yet.