TPDC completes construction of Tanzania natural gas pipeline

Posted on : Monday , 25th May 2015

Aminex has been informed by the Tanzanian Petroleum Development Corporation (TPDC) that the new regional pipeline to Dar es Salaam is now complete and hydrostatic pressure testing will begin shortly.

The construction of the processing plant on Songo Songo Island is approximately 95 per cent complete and it is anticipated that the main pipeline contractor will hand over the management of the infrastructure including the processing plants to TPDC late Q3 2015.

Based on this indicative timetable from TPDC and the continuing progress with the Gas Sales Agreement, Aminex expects commercial production will commence mid-year, with stabilised production rates achieved in the Q3 2015.

TPDC advised Wentworth Resources, a partner in the Mnazi Bay project, that some delays have been experienced in commissioning and startup of the gas pipeline project and, as a result, delivery of first gas into the pipeline is now expected to take place in July 2015.

Drilling operations of the MB-4 development well are expected to commence in the next few days and the well is designed to penetrate the Mnazi Bay Upper and Mnazi Bay Lower gas bearing sands of the discovered Mnazi Bay gas fields. The MB-4 development well has a planned depth of 2,089 meters True Vertical Depth Sub Sea and, based on the current drilling programme, is expected to take approximately two months to drill and complete.

Wentworth has a 31.94 per cent net interest in this well, which is being operated by Maurel et Prom and drilled with the Caroil #2 drilling rig.

Geoff Bury, Wentworth Resources managing director, commented: "We are very encouraged by the progress of the pipeline infrastructure and all aspects of the gas pipeline project. Whilst completion and commissioning delays will impact the timing and amount of expected cash flow generated in 2015, we see clear, tangible progress towards first gas being delivered into the new pipeline in the summer and look forward to ramping up volumes of gas supply, helped by additional production capacity expected from the MB-4 development well.

"In light of this delay, we are continuing to work on securing additional debt financing to ensure that we have sufficient funds available to see us through to first cashflow. With the pipeline project nearing completion and a signed long-term Gas Sales Agreement, Wentworth and the Mnazi Bay Partners are well positioned to be the first suppliers of gas into the new pipeline."