Lupane Methane Coal Bed Gas – Real or Imagined?

Youths have dreams of getting formal employment from the Lupane Coal Bed Methane gas project. Image by SADC Mining and Construction

BY CALVIN MANIKA | @The_CBNews | This email address is being protected from spambots. You need JavaScript enabled to view it. | OCT 18, 2021

The existence of coal bed methane in Matabeleland North gas has been known for decades, however, to date nothing tangible has materialised in its exploration.

LUPANE (The Citizen Bulletin) — Khumbulani Sibanda failed to sit for the ordinary level examinations due to financial challenges and has been at home doing piecemeal jobs for a decade.

Now his hope is in the much-touted Lupane Coal Bed Methane (CBM) gas project. He thinks that the commencement of the project will turn around his situation and others in Lupane.

“I heard about the discovery of gas since my school days. I need something to do like formal employment. If operational, I can find work because gas extraction involves big operations, and casual labour is required.”
Khumbulani Sibanda

Almost two decades ago, Methane Coal Bed Gas was discovered in Lupane, the capital of Matabeleland North. It has been a topic of discussion without practical efforts to extract the resource. Official sources estimate that there are 40 trillion cubic feet of potentially recoverable gas in the Lupane-Lubimbi area. Several government officials have visited the site giving hope for the commencement of the multi-billion project. However, the project remains a pipe dream.

Speaking to this publication, Member of Parliament for Lupane East, Martin Khumalo, says that the CBM gas was found at the Cewale area, Gundwane/Ngondo area, and Shabulanyana area Lupane.

“Consultations were done, and meetings with community and local leadership, including village heads, headmen and chiefs, were carried out, including traditional ceremonies to appease ancestral spirits,” says Khumalo.

The government granted gas exploration in Lupane a national project status in 2007, but commercial exploitation has been failing to take off. Naturally, methane gas produces Hydrogen, utilisation which is used in the manufacture of fertilisers. The gas is also used in power generation. But, unfortunately, in Lupane, it is a story the residents are tired of without seeing meaningful developments around the project.

In a society like Lupane, marginalised, with a high rate of unemployment, affected by climate change and occasionally affected by wildlife, the commencement of the gas project could have improved lives and develop surrounding communities.

The Citizen Bulletin established that, in 2015, Russian energy giant Gazprom, also expressed an interest in extracting coal bed methane gas in Lupane. In September 2019, the government said Shangani Energy Exploration (SEE), owned by Chinese steel giant, Sino Steel was interested in the project. SEE has earmarked US$780 million to build a 600-megawatt power station and petrochemical related industries.

In January 2020, reports said South African mining company Tumagole Consortium was committed to investing as much as R55billion on the coal bed methane gas project, but to no avail.

Among the companies that have been granted concessions is Sakunda Holdings. Sable Chemicals has also shown a keen interest.

Lupane residents cite that despite many unresolved issues in Lupane and Matabeleland region as a whole, the government seems to further its marginalisation agenda instead of closing the gap.

“We have been isolated from the main economic activities for a long time. Our people are here without meaningful life achievements. Lupane is sandy. The government keeps on derailing at the expense of development.”
Dube, a Lupane resident

On the other hand, the Member of Parliament for Lupane East is optimistic about the CBM gas project expressing that, it will turn around the misfortunes of Lupane.

“I see Lupane developing greatly through the gas project. If fully exploited, the gas in Lupane will supply the rest of the SADC region for more than 50 years. This would change the country’s economy and the face of Lupane,” Khumalo says.

Commercial exploitation of the natural gas has, over the years, been failing to take off, until now. Image by Financial Fortune Media

Zimbabwe launched a roadmap that seeks to propel the mining sector to a US$12 billion industry by 2023. However, the country has not yet crafted a gas policy to regulate the new industry. Of late, the World Bank has urged the government to develop a clear strategy to extract the gas in Lupane.

Last year the Minister of Mines and Mining Development, Winston Chitando, raised hope on the project.

“Government is very serious and working hard to ensure there is the utilisation of our CBM resources for the country’s development. We expect by the end of October to have a Memorandum of Understanding (MoU) with one of the holders of a major CBM concession for the construction of a power station,” he said.

According to the Ministry of Mines and Mines Development, coal-bed methane or natural gas occurs in the Matabeleland North province of Zimbabwe in the Hwange-Binga-Lupane area and the Southeast Lowveld area in Chiredzi. Currently, two mining companies are registered by the Ministry of Mines and Mining Development to mine Natural gas in the Lupane area: Zambezi gas (Pvt) Ltd and Discovery Investments (Pvt).

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Speaking to The Citizen Bulletin, Matabeleland North Environmental Management Agency (EMA) Education and Publicity Officer Mildred Matunga explains that the Government of Zimbabwe gazetted the Environmental Management Act (CAP 20:27) and Statutory Instrument 7 of 2007 (Environmental Impact Assessment and Ecosystems Protection), which compels prescribed projects listed under the First Schedule of the said Act to undergo the EIA process before implementation.  

“Coal bed methane gas exploration is one such project that requires an EIA certification prior.  An EIA is a planning tool used to identify, predict and assess potential impacts (either positive or negative) that may arise from a planned project. The initial EIA certificate is valid for two years, followed by annual renewals after that. The Agency does not compel any proponent as to when to start operating after the issuance of the EIA certificate,” says Matunga.

Speaking to this reporter on the possibility of displacement of human settlements due to the gas project MP Khumalo says there is none.

“But a thorough feasibility study should be done to determine the possible threats and benefits to the community and environment.”

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