PAN African Energy Tanzania Limited (PAET) has started to pump additional gas that will allow Tanzania Electric Supply Company Limited (TANESCO) to generate electricity power to meet emerging demand.
This move comes after the PAET inked down a short-term sales agreement with the Tanzania Petroleum Development Corporation (TPDC) and TANESCO for the immediate supply of gas of up to 35 million standard cubic feet per day.
According to the statement issued by Orca Exploration Group yesterday, the first gas flowed through TPDC’s national natural gas infrastructure on 24 December last year and production averaged 20 MMscf/d in the first ten days of operation.
Orca’s Chief Executive Officer Nigel Friend said, “We have worked very closely with TPDC and TANESCO to ensure that Songo Songo natural gas is available for electricity and industrial demand on a timely basis.”
It has been made possible by the field work programme that was completed by the Company in 2016 and the construction of extensive gas processing and pipeline infrastructure capacity by TPDC and Tanzania government that was commissioned in the same year.
“We look forward to working with all parties to ensure that affordable indigenous gas continues to be a significant proportion of the energy mix in Tanzania,” he added.
The agreement provides a mechanism for the parties to agree to one-month extensions for a maximum term of six months and is expected to be superseded by a long-term agreement.
Total additional gas sales, including those through the Songas gas processing and transportation system (Songas facilities), averaged 56 MMscf/d over the same period.
This compares to an average of the third quarter of 44 MMscf/d. PAET can supply these additional volumes from its existing well stock.
Two wells, SS-11 and SS12 are tied into the NNGI and SS- 10 will be connected if required to meet demand.
PAET is currently in the process of installing a refrigeration package as part of the Songas Facilities to ensure that gas can continue to be processed at the plant’s capacity.
It is expected that this will be operational by mid- 2019.