GasMeth Energy Ltd has injected an additional Rwf230 billion into its ongoing methane gas extraction and processing project on Lake Kivu, bringing the total investment to more than Rwf810 billion.

The project’s first phase, valued at Rwf521 billion, will extract and process methane gas for both domestic and industrial use.

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Stephen Tierney, the company’s Chief Executive Officer, said the project’s total budget is projected at $560 million, with the first phase estimated at just over $360 million.

"At this stage, all of the lake sites and onshore work are largely complete, and offshore work has commenced,” Tierney said. "The key barge hull is under fabrication, along with pumps, compressors, and other long-lead equipment.”

He said the project is expected to reach full production capacity of 40 million cubic feet of gas per day by 2027.

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"Once operational, it will help meet Rwanda’s growing demand for cooking gas and automotive fuels, while reducing dependence on imported energy,” he added.

Signed in 2019 between GasMeth and the Government of Rwanda, the project encountered delays due to financing arrangements and global supply chain disruptions.

"To achieve funding, we had to secure a large number of confirmed gas off-takers, which took time,” Tierney explained. "We also faced challenges in sourcing major equipment internationally, with longer-than-expected delivery timelines.”

Despite these hurdles, Tierney said the project is now progressing steadily, backed by the Government of Rwanda and international financiers led by the African Export-Import Bank (Afreximbank).

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"We look forward to a more affordable supply of cooking gas, auto fuels, and industrial gas,” he noted. "This will help cut CO₂ emissions, improve air quality, and reduce reliance on wood and charcoal, which are major drivers of deforestation.”

Currently, around 250 people are employed directly and indirectly by the project. That number is expected to rise to between 600 and 800 workers next year as construction intensifies.

The plant, located in Bwishyura Sector, Karongi District, began preliminary works in 2022. Once completed, it is expected to supply gas to Rwandan households by 2027, offering a cheaper and cleaner alternative to imported liquefied petroleum gas (LPG).

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According to the 2024 Integrated Household Living Conditions Survey (EICV7), 75% of Rwandan households still rely on firewood for cooking, 18.8% use charcoal, and only 5.4% depend on gas, biogas, or electricity.

Rwanda currently has two operational methane gas plants, which are KivuWatt and Shema Power Lake Kivu. GasMeth Energy’s facility will be the third.