Online Reporter
Business Reporter
A CONSORTIUM of local and foreign investors has commenced work on the development of the Lubimbi coal-bed methane (CBM) gas field in Matabeleland North province, a project expected to bring limitless economic opportunities for Zimbabwe.
CBM is a natural gas trapped in coal seams and the hydrocarbon is recognised as a highly efficient and environmentally friendly fuel for electricity generation.
Therefore, if successfully tapped, the CBM gas from the Lubimbi fields will add impetus to the Government’s ongoing efforts to boost power generation in the country.
Presently, Zimbabwe’s energy demand far exceeds its generation capacity, with a peak electricity demand of 2 200 megawatts (MW) and an average generation of 1 300MW.
With the envisaged economic boom, power demand is likely to increase.
Hwange and Lupane, which are also in Matabeleland North, are understood to have over 800 million cubic metres per square kilometre.
Further studies indicate that Zimbabwe has more than 40 trillion cubic feet of potentially recoverable gas in the Lupane-Lubimbi area, making it one of the largest CBM deposits in Southern Africa.
Addressing Parliament recently, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said: “In terms of investors in the area, there is an investor who has already started operations in the Lubimbi area. I know them, but I cannot disclose their names in Parliament just like that.
“What I can say is that it’s a partnership between a local investor and foreign investors — they appear serious and we are optimistic about progress in tapping into methane gas.”
In 2020, the Government issued special grants to five investors — Alabara Resources, Zambezi Gas and Sakunda Energy (all being local companies); as well as Tumagole of South Africa; and Shangani Energy Exploration, which is owned by Chinese steel giant Sinosteel — to explore and tap into clean energy for electricity generation in Lupane, Gwayi and Hwange.
And in 2021, Jacqueline Resources (Pvt) Ltd, whose headquarters are in Australia, was also awarded a special grant to explore and develop CBM gas fields in the same province.
In 2023, Alabara Resources was reported to have completed Phase 1 of confirmatory drilling, which went up to a depth of 700 metres, and it intended to move into Phase 2, which entails mine development.
On implementation of the project, the firm, which specialises in exploration and development of mineral projects such that they turn into profitable assets, intends to use compressed gas to fuel gas vehicles and generate power through a gas-fired plant.
CBM also has the potential to create other opportunities such as a hydrogen economy, which would also bolster Zimbabwe’s efforts to transition to clean energy.
In an interview, economist Ms Mercy Shumba applauded the Government for making progress towards tapping into CBM in the Lubimbi fields.
“It is quite pleasing to note that significant progress has been made towards the development of the Lubimbi CBM gas fields as this enhances the country’s energy security and reduces reliance on imported fuels.
“However, the project’s success is dependent on several factors, including continued investment in necessary infrastructure, such as pipelines and processing facilities, effective regulatory frameworks to govern the extraction and utilisation of the gas, as well as environmental considerations, including mitigating methane emissions and ensuring responsible water management,” she said.
“If properly managed, the Lubimbi coal bed methane project could contribute significantly to Zimbabwe’s economic growth, improve energy access and create employment opportunities.”
