ASX-listed energy group NuEnergy Gas has launched an airborne geophysical exploration campaign for shale gas and coal-bed methane (CBM) at its 346 km2 licence area in the southern Malawi district of Chikhwawa.

NuEnergy chairperson Graeme Robertson says the airborne geophysical survey is part of ongoing geological studies at the site, where exploratory drilling scheduled to start later this year.

The geological studies are aimed at determining the depth and optimal drilling locations in the exploration area, which covers the lower Shire basin.

The geophysical survey is being conducted by South African contractor New Resolution Geophysics, with geophysicists from UK-based consultancy JMJ Petroleum providing quality control services.

JMJ Petroleum has also been mandated to do the processing and interpretation of the data from the geophysical survey, which will be integrated with other available data to create a model of the sedimentary basin.

“This model will, in turn, be used to determine the best possible location for the first exploratory drill holes,” says Robertson.

He says NuEnergy Gas intends to set up compressed natural gas and micro liquefied natural gas (LNG) plants in Malawi so that CBM and shale gas can be efficiently transported to distribution points for sale to industries and for use as vehicle fuel.

“As Malawi has no indigenous source of liquid fuels, gas, as a fuel for transport, will have a ready and well-supported market in terms of price and demand. As gas will be an alternative to expen- sive diesel, pricing is expected to be attractive, which will be a benefit to the people of Malawi,” says Robertson.

Malawi Vice President Khumbo Kachale, who officiated at the launch of the airborne geophysical survey at Chileka Airport, in Malawi’s commercial capital, Blantyre, has hailed NuEnergy Gas for initiating the project.

“The coming in of investors such as NuEnergy signifies that government’s plan to spearhead economic growth by promoting a private-sector-driven economy is working,” says Kachale.

Malawi Geological Survey Department director Leonard Kalindekafe notes that NuEnergy Gas is the first company to undertake CBM exploration in Malawi and the discovery of the product would fill a big gap in the country’s energy sector. He adds that CBM will support Malawi’s development through electricity generation and the production of compressed natural gas for household and industrial use.