Tanzania’s natural gas power demand is forecast to increase this year, a key stakeholder has predicted.
Orca Exploration Group (Orca), the company operating a natural gas processing facility in Songo Songo Island in Lindi, said in its recently published 2018 annual report that the coming of new manufacturing firms like Dangote Cement creates room for an increase in demand.
Dar es Salaam. Tanzania’s natural gas power demand is forecast to increase this year, a key stakeholder has predicted.
Orca Exploration Group (Orca), the company operating a natural gas processing facility in Songo Songo Island in Lindi, said in its recently published 2018 annual report that the coming of new manufacturing firms like Dangote Cement creates room for an increase in demand.
“2018 was a year of positive net cash flow for the company and we believe that we are well positioned to grow over the coming years through our stated strategy of maximizing the potential of integrated gas projects,” he noted. According to him, last year, 160 MWs of new gas-fired generation capacity was commissioned.
As a result, the company’s natural gas sales rose by 55 per cent during the first two months of 2019 compared to its monthly average sales for the entire 2018.
“We are expecting that an additional 180 MW of gas-fired generation capacity will be commissioned in stages over the next six to eighteen months, increasing gas demand further,” Friends said.
Shortly before year end, Orca’s subsidiary, Pan African Energy Tanzania Limited (Paet), signed a short-term sales agreement with the Tanzania Petroleum Development Corporation (TPDC) and Tanzania Electric Supply Company Limited (Tanesco) for the immediate supply of gas to Tanesco.
These additional volumes are being processed and transported and are expected to allow Tanesco to generate increased and more stable power to meet emerging demand.
The report says that Paet and TPDC have submitted a long-term gas sales agreement to the Ministry for approval.
Tanzania has been exploring for natural gas for more than 50 years.
The first natural gas discovery in Tanzania was made in 1974 on the Songo Songo Island, followed by a second discovery at the Mnazi Bay in Mtwara in 1982.
Songo Songo was Tanzania’s first natural gas development.
