Orca has announced that shortly\nbefore the year ended its Tanzania subsidiary Pan African Energy Tanzania\nLimited signed a short-term sales agreement with the Tanzania Petroleum\nDevelopment Corporation (TPDC) and the Tanzania Electric Supply Company (TANESCO)\nfor the immediate supply of gas to TANESCO of up to 35 million standard cubic\nfeet per day. <\/p>\n\n\n\n
These additional volumes are\nbeing processed and transported through TPDC\u2019s National Natural Gas\nInfrastructure and will allow TANESCO to generate increased and more stable\npower to meet emerging demand.<\/p>\n\n\n\n
First gas flowed through the NNGI\non 24 December and production averaged 20 MMscf\/d in the first ten days of\noperation. Total Additional Gas sales, including those through the Songas gas\nprocessing and transportation system, averaged 56 MMscf\/d over the same period.\nThis compares to an average for the third quarter of 44 MMscf\/d. <\/p>\n\n\n\n
The Agreement provides a\nmechanism for the parties to agree to one-month extensions for a maximum term\nof six months and is expected to be superseded by a long-term agreement.<\/p>\n\n\n\n
\u201cWe have worked very closely with\nTPDC and TANESCO to ensure that Songo Songo natural gas is available for\nelectricity and industrial demand on a timely basis. It has been made possible\nby the field work programme that was completed by the Company in 2016 and the\nconstruction of extensive gas processing and pipeline infrastructure capacity\nby TPDC and the Government of Tanzania that was commissioned in the same year.\nWe look forward to working with all parties to ensure that affordable indigenous\ngas continues to be a significant proportion of the energy mix in Tanzania,\u201d Nigel\nFriend, CEO of Orca, commented.<\/p>\n\n\n\n
PAET can supply these additional\nvolumes from its existing well stock.Already two wells, SS-11 and SS12 are tied\ninto the NNGI and SS-10 will be connected if required to meet demand. PAET is\ncurrently in the process of installing a refrigeration package as part of the\nSongas Facilities to ensure that gas can continue to be processed at the\nplant\u2019s capacity. It is expected that this will be operational by mid-2019.<\/p>\n","protected":false},"excerpt":{"rendered":"