Tanzania’s Songo Songo gas plant enters commercial operation

Jun 06, 2016 12:00 AM

Tanzania Petroleum Development Corp. (TPDC) has commissioned its newly expanded Songo Songo gas plant to process production from Aminex PLC subsidiary Ndovu Resources Ltd.’s Kiliwani North field on Songo Songo Island, 15 km off mainland Tanzania.

The Songo Songo gas plant and associated subsea pipeline began operations on June 1, with the first Kiliwani North-1 (KN-1) gas processed and entered into to the regional pipeline system for distribution under a take-or-pay agreement to supply the local power market on June 2, Aminex said on June 6.

Gas rates at the plant and pipeline are planned to increase to 30 MMcfd gradually over the course of the ongoing commissioning phase.

The power generation system and other unidentified auxiliary facilities also have been commissioned, the company said.

Startup of the Songo Songo gas plant follows Aminex’s previous announcement in early April that it started initial production from the KN-1.

With certified reserves of 45 bcf of gas, KN-1 lies just 2 km from the Songo Songo field gas plant that in turn is connected to the mainland and the key Ubungo power plant that generates about 50% of Tanzania’s electricity capacity.

In late 2015, TPDC completed expansion and upgrading projects to accommodate increased demand for gas-fired electrical power in the country at investments of $151.7 million for the 140-MMcfd Songo Songo gas processing plant and $197.9 million for the 210-MMcfd Mnazi Bay gas plant.

With KN-1’s commissioning phase so far on schedule, Aminex is continuing to focus on delivering production growth through Kiliwani as well as appraisal and eventual development program at its licensed area in the prospective Ruvuma block onshore southern Tanzania, near the Mozambican border, the company said.

Alongside operator Ndovu Resources (Aminex) 51.75%, partners in the Kiliwani North development license include RAK Gas LLC 23.75%, Bounty Oil & Gas NL 9.5%, Solo Oil PLC 10%, and TPDC 5% following Aminex’s disposal of 3.825% on Apr. 4 of its previous working interest in license.

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