Mnazi Bay joint venture partners have seen a decline in gas sales as the average gross daily gas production for the third quarter was 34 MMscf\/d down from 51 MMscf\/d during Q2 2016 the suspension of operations at the Symbion gas-fired power plant as a result of a dispute with the Tanzania.<\/p>\n
The production decline is also as a result of disruptions at the gas-fired power plant such as overhauls and commissioning of gas turbines at Ubungo II and Kinyerezi I power stations, and allocation of gas demand to industry competitors at the Songo Songo gas processing facility.<\/p>\n
“Q3 2016 gas sales volumes were impacted by a combination of factors that were primarily influenced by contractual issues beyond the control of the Mnazi Bay joint venture partners,\u201d says Wentworth Resources managing director Geoff Bury.<\/p>\n
Wentworth Resources reports that the year-to-date average gross daily production is 44 MMscf\/d.<\/p>\n
The partners are however hopeful of a demand increase from industrial consumers including the supplying the Dangote cement plant (30-40 MMscf\/d) and resumption of operations at the Symbion power plant (20 MMscf\/d) in the future.<\/p>\n
\u201cWe anticipate base demand for the remainder of 2016 and all of 2017 to be between 40 and 50 MMscf\/d with possible significant increases originating from gas sales to industrial consumers and resumption of operations at the idle gas-fired 120 Megawatt (MW) Symbion power generation plant,\u201d adds Bury.<\/p>\n
\u201cWe continue to feel confident in the future build up in demand; as the new power plants, Kinyerezi-1 expansion and Kinyerezi II, are under construction and expected to be commissioned and operational during 2018, which coupled with increased industrial demand, provides exceptional long-term potential for the Company.”<\/p>\n
During Q3 2016 there was ongoing expansion of the liquid separation units and gas processing facilities at Manzi Bay with commissioning and full operations expected in the coming months.<\/p>\n
During the period Wentworth reports gas sales revenue of $2.38 million for the quarter up from $0.97 million in Q3 2015. Loss before tax for the quarter was $0.9 million down from $1.25 million last year while exploration, appraisal and development capital expenditures was down to $0.97 million (Q3 2015: $1.51 million).<\/p>\n
Maurel et Prom is the operator with a 48.06 percent participating interest while Wentworth Resources and TPDC have 31.94 percent and 20 percent respectively.<\/p>\n","protected":false},"excerpt":{"rendered":"