Magazine article African Business

Songo Songo Falls into Place. (Oil and Gas)

Magazine article African Business

Songo Songo Falls into Place. (Oil and Gas)

Article excerpt

Following the World Bank's decision in October to back the Songo Songo gas project in Tanzania, the full details of the scheme have now been ironed our. The development of the estimated one trillion cubic feet of natural gas lying offshore will include a gas gathering and processing centre. A 25km pipeline will transport the gas to the installation on Songo Songo Island near the coast and 200km south of Dar es Salaam, from where it will be piped to the Ubungo power plant in Dar es Salaam.

The plant is currently oil fired but its four turbines are to be converted to gas and a fifth turbine is expected to be constructed. Initial generating capacity at the plant is expected to be 112MW. All the electricity generated will be sold to Tanzania Electricity Supply Company (Tanesco) through a 20 year power purchase agreement. It is hoped that excess gas production can be marketed internationally by a joint venture owned by Pan-African Energy Tanzania and TPDC.

The partners in the project are US firm AES Corporation, British company CDC Capital Ventures, Songas Ltd, Tanesco, Tanzania Development Finance Company and Tanzania Petroleum Development Corporation (TPDC).

A new company, Songas, is being set up specifically for the project and is a majority privately owned and managed gas and power utility. The company will build, own and operate the gas processing plant and pipeline, in addition to operating the Ubungo gas turbines. Bids from contractors hoping to work on Songo Songo were invited in mid-November 2001 and are expected to be awarded in March 2002. …

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