Govt to relax gas laws

investors had inquired about coal bed methane gas which can be used for electricity generation and the manufacture of fertiliser.
Through the production of fertiliser and industrial gas, the country can realise up to US$2 billion annually, he said.
“Government will support fertiliser production through newer technologies, such as coal gasification and coal bed methane gas,” Minister Ncube said in an industrial policy document launched last week.
“With regards to methane, a favourable legislation and favourable and regulatory framework will be created to promote exploitation of the resource.” 
The Lupgas was accorded national project                        status in 2007 but there have been no developments,  largely due to lack of funds and the  absence of a specific regulatory framework that safeguards investments.
Observers have noted that there is need for legislation and regulatory framework that spells out the legal rights and duties of those who exploit gases.
According to experts, the methane gas in Lupane can exceed the combined proven resources for all the countries in  sub-Sahara Africa.
Preliminary research has shown that Hwange/ Lupane basins could have billions of cubic metres per square mile of sulphur-free methane gas.
Two years ago, Government announced plans to invest at least US$450 million in the development of the coal bed methane gas in Lupane.
The Reserve Bank of Zimbabwe was recently quoted by a local daily as saying the country might lose out on its rich coal bed methane gas reserves in Lupane as Botswana had already started tapping into the shared resource.
“According to the United States, we have the largest reserves of methane gas in sub-Saharan Africa here in Lupane,” said Dr Gono.
“But we are not exploiting it and it is now flowing to Botswana which is exploiting it.”
While Dr Gono could not elaborate, Energy and Power Development Deputy Minister Hubert Nyanhongo said last year the gas was escaping through holes drilled by a French firm five years ago.
Companies that have previously shown interest in Lupane gas include the Industrial Development Corporation, TA Holdings which owns Sable Chemicals, fertiliser firm Chemplex and Zesa Holdings.
Hwange Colliery Company last week said that it was working on a feasibility plan for the coal bed methane gas exploration and extraction. The project is being worked on and a potential joint venture partner has been engaged. The full cost of development is estimated to be US$500 million.