Mnazi Bay JV Partners See Sales Decline following Symbion Power Plant Closure

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.

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.

“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,” says Wentworth Resources managing director Geoff Bury.

Wentworth Resources reports that the year-to-date average gross daily production is 44 MMscf/d.

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.

“We 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,” adds Bury.

“We 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.”

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.

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).

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.

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