Gas production from new well to start soon

Business

THE Chairman of Board of Directors of the Tanzania Petroleum Development Corporation (TPDC), Mr Michael Mwanda, is shown by Madimba Gas Plant Manager, Mr Leonce Mroso (right), part of the area which has been destroyed by sea waves on Mnazi Bay in Madimba Ward, Mtwara Region, during the board’s tour of the area recently. The seafront was eroded by rainwater endangering the gas pipeline. Looking on (left) is TPDC Public Relations Officer, Mr Francis Lupokela. (Photo by Our Correspondent)

Written by DAILY NEWS Reporter and Agencies

GAS production from the Kiliwani North is getting closer as Tanzania Petroleum Development Corporation (TPDC) began constructing vital infrastructures after completing laying of pipeline.

TPDC, through its contractors, has now begun constructing the Skid Metering Unit within the boundaries of the Kiliwani North Development Licence (KNDL) and have completed laying pipe to the KNDL boundary.

Once construction is complete the Kiliwani North 1 well (KN-1) will be connected to the new Songo Songo processing plant where the gas, once produced, will be processed prior to being transported and sold in the new Dar es Salaam to Mnazi Bay pipeline.

The KNDL joint venture has been notified by TPDC that pressure testing of the pipeline is expected to commence during the first half of 2015 and the final construction of equipment to connect is expected within this timeframe in order for commissioning to occur.

“As the Dar es Salaam to Mnazi Bay pipeline nears completion and the final stages of construction are now occurring on the Kiliwani North- 1 well, we look forward to first commercial gas production from the field which will place the Company in the position of being the first new Tanzanian gas producer in recent times,” says Aminex CEO, Mr Jay Bhattacherjee.

The board has also said the delays in finalizing the Gas Sales Agreement is largely because of Tanzanian authorities long approval process.

The Board says it expects the GSA to be signed prior to any gas being delivered for pressure testing or commissioning and the Company will accordingly continue to keep the market informed on progress.

The KNDL includes the KN-1 well, which is expected to produce at approximately 20 mmcfd as soon as the well is brought on stream and will represent a major milestone for Aminex by providing first revenues from Tanzania. Independently verified resources at Kiliwani North are estimated to be 45 billion cubic feet of gas in place.

Aminex is the Operator at Kiliwani North Development Licence with about 59.5 per cent withholding interest after selling 6.5 per cent interest to Solo Oil with an option to acquire another similar stake once the GSA is signed.