Commercial Agreements
Major Offtake Deal
In March 2025 Botala achieved its largest commercial milestone to date, securing its first major industrial customer, SCAW South Africa Proprietary Limited (SCAW), with the signing of a binding letter of intent (LOI) in relation to the negotiation of an LNG offtake agreement.
The agreement provides SCAW with exclusive rights to procure up to 3.5 PJ/a (100% of Phase 1 Gas) of LNG from the Serowe CBM Project’s first phase, with an option to expand to 4.7 PJ/a as production scales up.
This commitment significantly assists in de-risking the Serowe CBM Project, establishing a contracted customer and supporting commercial viability as Botala advances towards development.
Importantly, the agreement integrates SCAW into Botala’s ongoing Bankable Feasibility Study, by attending to aligning infrastructure developments, logistics, and delivery optimisation. The BFS findings will guide the final LNG Sale and Purchase Agreement (SPA)/Gas Sales Agreement (GSA).
With the demand for gas in South Africa intensifying, Botala’s agreement with SCAW is a clear demonstration of the strong demand appetite for reliable LNG supply.
By securing SCAW as an anchor customer, Botala positions itself as a key LNG supplier in a high demand market.
Full details of the SCAW agreement can be found here.
SCAW South Africa Proprietary Limited
SCAW is a leading industrial manufacturer specialising in various steel products, with a significant natural gas demand, using it as a key energy source for its operations in South Africa. By securing a long-term LNG supply agreement, SCAW is reducing its reliance on traditional fuels, improving cost predictability, and supporting South Africa’s energy transition towards cleaner alternatives. This partnership ensures stable and secure gas supply for SCAW while strengthening Botala’s role as a key LNG supplier to Southern Africa’s industrial sector
Strategic LNG Term Sheet
In January 2025 Botala established a strategic partnership with FFS Refiners (Pty) Ltd (FFS) a South African hydrocarbon solutions leader, through the signing of a non-binding Term Sheet to establish a long-term LNG supply agreement.
This partnership leverages Botala’s resources from its Serowe CBM Project and FFS’s established market presence in South Africa to deliver reliable and sustainable energy solutions across the region.
The Term Sheet outlines key conditions, including regulatory approvals, financial structuring, and infrastructure development, to ensure seamless delivery of LNG from Botswana’s Serowe Wellfield to South Africa. Under the term sheet, initial production capacity is targeted at 50 tons per day (t/d) by late 2026, scaling up to over 200 t/d per day by 2028.
Responsibilities of the Parties
- Botala: Responsible for gas production, processing, and LNG logistics from the Serowe Wellfield to South Africa.
- FFS: Will manage midstream and downstream operations, including LNG distribution, customer sales, and market expansion strategies.
Full details of the agreement can be found here.
FFS Refiners
South African based FFS is a leading hydrocarbon solutions provider with over five decades of experience, specialising in developing tailored fuel solutions for industrial and commercial clients, focusing on reliability, innovation and sustainability.
Since 2019, FFS has been a pioneer in South Africa’s LNG sector, becoming the first company to import LNG into the country. FFS’s commitment to sustainability is evident in their focus on cleaner fuels like LNG, aligning with global efforts to reduce carbon emissions and transition to greener energy alternatives. Their strong market presence and customer network make them an ideal partner for Botala in developing a regional LNG supply chain.