Botala Energy (ASX:BTE) signed binding letter of Intent to complete a liquefied natural gas (LNG) offtake agreement with SCAW South Africa Proprietary, according to a Thursday Australian bourse filing.

SCAW will purchase up to 3.5 petajoules per annum of LNG from the Serowe CBM project's first phase in Botswana, with an option to expand to 4.7 petajoule per annum in total.

The agreement will also integrate SCAW into the bankable feasibility study.

The agreement has an initial term of 10 years, with an option to extend up to 20 years. The deal has a revenue potential of around AU$381 million annually, targeting first LNG supply in 2027 or 2028.