On 3rd August 2020, Orca Energy Group (Orca) signed a contract with China Petroleum and Technology Development Company (CPTDC) for the design, supply, installation, and commissioning of gas compressors within the Songas natural gas processing facility on Songo Songo Island in Tanzania.
The compressors will address declining reservoir pressure and ensure that maximum production levels can be sustained, subject to demand, till the end of the gas Production Sharing Agreement between Orca, the Government of Tanzania, and Tanzania Petroleum Development Corporation (TPDC), in 2026.
Orca operates the natural gas processing facility on Songo Songo, off the coast of Southern Tanzania. The gas is supplied to the onshore Tanzanian Electric Supply Company Limited (TANESCO) power generation plants in Ubungo, via a 25 km 12″ offshore pipeline and a 207 km 16”.
CPTDC is a wholly-owned subsidiary of China National Petroleum Corporation (CNPC) that exports petroleum equipment and materials and provides relative services.
The compressors are valued at USD 38 million and are scheduled to be operational by the end of Q2 2022.
Tanzania is now entering the dry season – with a subsequent decrease in hydropower production and expected increased demand for gas-powered electricity.
Orca continues to identify and implement options to increase and sustain production gas levels. Nigel Friend, CEO of Orca, commented: “We are well placed to finance and deliver a number of essential capital projects which are critical to sustaining gas production in Tanzania […] The Government of Tanzania has shown a long-term commitment to natural gas through its investment in gas infrastructure and we will continue to develop the Songo Songo field with our partner, the Tanzania Petroleum Development Corporation, to fuel economic growth and prosperity in the country […]”
Tanzania has been exploring for natural gas for more than 50 years. The first natural gas discovery was made in 1974 on the Songo Songo Island.
Tanzania’s estimated natural gas reserves currently (2016) stand at 57 trillion cubic feet (TCF). Gas-fired electricity represents about 45% of the country’s total installed power capacity while hydropower represents 42%.