Name and Location
KivuWatt methane gas project, Lake Kivu, Rwanda.

Project Description
The project involves the integrated development of a floating methane gas extraction platform and an electricity generation plant, in the vicinity of Lake Kivu, to take advantage of its methane gas and hydro and geothermal energy resources.

The project will be developed in two phases.

Phase 1 of the project entails recovering gas from Lake Kivu’s waters at a depth of 350 m, using a semisubmerged barge, which will be moored about 12.5 km off the city of Kibuye. The extracted gas will be processed and pumped ashore to the proposed gas-receiving power station, through a submerged floating pipeline.

The electric power will be generated by methane-fuelled reciprocating engine generator sets for a combined net output of 25 MW.

Phase 2 will expand the facilities designed in the initial stage to initiate an additional 75 MW of power through the use of nine additional generator sets. The power output will be sold to State-owned utility Rwanda Electricity Corporation (Reco), formerly known as Electrogaz, under a 25-year concessionary agreement.

Output from the initial phase will be connected to the national grid through a new 11 kV transmission line, with the output from Phase 2 expected to connect to the existing 220 kV transmission system using two new transformers.

The project is expected to create low-cost energy and reduce the country’s reliance on imported electricity from neighbouring countries, while also catering for domestic demand.

Value
The project is valued at $325-million.

Duration
Phase 1 is scheduled to start delivering power in January 2012.

Client
The Government of Rwanda.

Key Contracts and Suppliers
ContourGlobal (develop, construct and operate the platform-based gas extraction system); African Development Bank (AfDB – loan finance); Wärtsilä (power plant provider); Antares Offshore (feasibility engineering and detailed design of gas extraction system); Norton Rose, Hogan & Hartson (now Hogan & Lovell) and Kelley, Drye & Warren (legal counsellors).

Latest Developments
Wärtsilä has been awarded the contract to supply a power plant to the Republic of Rwanda. The turnkey project is of particular significance, since the power plant will use methane gas from the nearby Lake Kivu as fuel.

When operational, the power plant will supply electricity to Rwanda’s national utility.

The plant will be powered by 20-cylinder gas-powered engines and have an electrical output of 25 MW. Future planned expansions to this project will increase this output by an additional 75 MW.

Delivery of the equipment is scheduled for the first quarter of 2012, and the plant is expected to be operational in the third quarter of the same year.

Meanwhile, in April, the AfDB approved a $25-million senior private-sector loan to fund the KivuWatt gas project.

On Budget and on Time?
The first phase of the project was initially expected to deliver electricity early this year; however, owing to environment and safety challenges encountered along the way, it will now begin operations in January 2012.

Contact Details for Project Information
Antares Offshore, Jerry Streeter, tel +1 713 877 4132.
ContourGlobal, tel +1 212 610 9140, fax +1 212 610 9144 or email NewYork.Inquiry@contourglobal.com; or Kathleen Valadez, tel +1 212 610 9147; or ContourGlobal (Rwanda), email Africa.Inquiry@ContourGlobal.com.
Kelley, Drye & Warren media relations, Elizabeth Kim, tel +1 212 808 5193 or email ekim@kelleydrye.com.
Norton Rose, Sarah Webster, tel +44 20 7444 5942 or email sarah.webster@nortonrose.com.
Wärtsilä media manager Mirja-Maija Santala, tel +358 400 793 827 or email mirja-maija.santala@wartsila.com.