In its interim financial statements for Q1 2020, exploration Group Orca (TSX-V: ORC.A, ORC.B), operator of the Songo Songo integrated gas project in Tanzania, informs that revenues decreased by 11% to USD 17.7 million compared to the same period in the previous year.
The company explains that the decrease is primarily a result of decreased sales to the Tanzanian Electric Supply Company Limited (TANESCO) under the Portfolio Gas Supply Agreement and a smaller current income tax adjustment due to lower revenues.
Gas deliveries for the quarter decreased by 8% compared to the same period in the previous year.
The decrease in gross sales volume was primarily due to the increase in hydro power generated due to higher than normal rainfall during the past six months which decreased sales of natural gas to TANESCO and Songas.
This was partially offset by an increase in sales to the Tanzanian Petroleum Development Corporation (TPDC) through the National Natural Gas Infrastructure (NNGI).
In May 2020, the Energy Minister Dr. Medard Kalemani informed that Tanzania’s power generation increased to 1,601.84 megawatts as of last April from 1,308MW in 2015.
Tanzania also recorded its highest access to electricity with 84.6% of the population in 2020.
