PanAfrican Energy Tanzania (PAET) has signed a short-term sales agreement with the Tanzania Petroleum Development Corporation (TPDC) and the Tanzania Electric Supply Company (TANESCO) for the immediate supply of gas to TANESCO of up to 35 million standard cubic feet per day (MMscf/d).
PAET explained in a statement that these additional volumes are being processed and transported through TPDC’s National Natural Gas Infrastructure (NNGI) and will allow TANESCO to generate increased and more stable power to meet emerging demand.
According to PAET, the first gas flowed through the NNGI on 24 December 2018 and production averaged 20 MMscf/d in the first ten days of operation.
Total additional gas sales, including those through the Songas gas processing and transportation system, averaged 56 MMscf/d over the same period.
This compares to an average for the third quarter of 44 MMscf/d.
PAET 's managing director David Roberts, commented “Together with TPDC and TANESCO we have focused our efforts to ensure the timely availability of Songo Songo natural gas to meet Tanzania’s growing electricity and industrial demand. Signing this agreement is a clear demonstration of the company’s cooperation with its stakeholders and our commitment to meet the energy needs of the country.”
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a mechanism for the parties to agree to one-month extensions for a maximum term of six months and is expected to be superseded by a long-term agreement. Read more: Stiegler’s Gorge hydropower project gains further support
PAET is supplying these additional volumes from its existing wells.
Two wells, SS-11 and SS12, are connected to the NNGI and SS-10 will be connected if required to meet demand.
PAET is currently in the process of installing a refrigeration package in the Songas processing facility 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.