Tanzania’s longest standing private sector investor in provision of
gas, PanAfrican Energy Tanzania Limited (PAT), has today announced
plans for significant additional infrastructure investment in two of
its assets at the Songo Songo gas fields. This will double production
capacity, in order to help the nation in the drive for additional
power generating capability.
PAT, which currently supplies gas primarily for power generation to
the Tanzania Electric Supply Company (TANESCO) and Songas, as well as
industrial customers, expects to increase its gas production capacity
from 113 million standard cubic feet per day to over 250 million
standard cubic feet per day in the coming months.
PAT General Manager, Andrew Brown, confirmed that the company would be
investing in exploration and production activities to more than double
production capacity.
“With demand for gas having increased since production began in 2004,
PAT will be raising production capacity of gas in line with Tanzania’s
energy infrastructure drive, and is helping plan for all areas of
potential expansion with the industry and the economy as a whole. PAT
is working in collaboration with the Tanzania Petroleum Development
Corporation (TPDC) and TANESCO to meet the country’s energy needs. We
are committed to ensuring that we play our part in helping meet the
needs of the Tanzanian people.”
Brown confirmed that the company had set aside USD130m for investment
in both Songo Songo main field with the drilling of two new wells, and
for increasing production from a third well. The drilling rig “Sakson
PR5” is currently being transported to arrive at Songo Songo in
mid-November. The first of the new wells is expected to begin drilling
in late November/early December.
“We also expect to spend between USD35m and USD40m at Songo Songo
West, an exploration prospect adjacent to the Songo Songo Field, which
we anticipate will, if successful, add significant reserves to those
of Songo Songo main,” said Brown.
PAT, which has been in partnership with TPDC since October 2001 under
a Production Sharing Agreement has played a key role in developing
Tanzania’s gas industry. The use of natural gas particularly for power
generation has made a significant contribution to Tanzania’s economy,
which is widely recognized to have saved over USD 2 billion in other
fuel costs to the country since commercial operations began in 2004.
ENDS
About PanAfrican Energy Tanzania
PanAfrican Energy Tanzania (PAT) has for the past 10 years been the
lead private sector investor in Tanzania’s gas industry, producing 102
million standard cubic feet of gas per day. Over 80% of this gas is
used for power generation in Tanzania.
A holding company under the Orca Group, PanAfrican Energy Tanzania
operates a gas processing facility on Songo Songo Island on behalf of
Songas Limited (Songas) on a no loss, no gain basis. The plant
supplies natural gas through a 25 km 12″ offshore pipeline and a 207
km 16″ onshore pipeline and is used mainly by the power sector and
industrial markets in the Dar es Salaam area.
Songo Songo was Tanzania’s first major natural gas development.
About Songo Songo West (SSW)
Songo Songo West lies approximately 2.5 kilometres west of the main
field and is mapped on seismic as having closure on an elongate
north-south oriented tilted fault block trap. As with the Songo Songo
main field, two reservoirs are envisaged to be present within the SSW
prospect – the Neocomian and the Cenomanian, although the primary
exploration potential lies within the Neocomian interval. SSW lies
entirely within the Company’s Discovery Blocks.