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Songo Songo Gas Delivery Increase by 68% in Q2 2019

August 28, 2019
2 minute read
tanzania gas

Orca Exploration Group (Orca), the company operating a natural gas processing facility on Songo Songo Island, off the coast of southern Tanzania, has published its 2019 Q2 Report.

The company’s operating revenue increased by 34% to USD 17.1 million in the quarter ended 30th June 2019 (Q2 2018: USD 12.8 million) and by 23% to USD 33.7 million for the six months ended 30th June 2019 (six months ended 30th June 2018: USD 27.3 million).

Gas deliveries increased by 68% to 56.6 MMcfd in the Q2 2019 (Q2 2018: 33.7 MMcfd) and by 66% to 59.0 MMcfd in the first six months of 2019 (six months ended 30th June 2018: 35.6 MMcfd) leading to a significant increase in operating revenue between periods mainly associated with higher deliveries to TANESCO through the NNGI.

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Revenue increased by 40% to USD 21.0 million in the Q2 2019 (Q2 2018: USD 15.0 million) and by 40% to USD 40.9 million for the six months ended 30th June 2019 (six months ended 30th June 2018: USD 29.2 million).

The company explains that the increase in revenue is primarily a consequence of higher revenues from sales to TANESCO, an increase in profit share percentage from 35% to 55% due to increased volumes between periods and positive current income tax adjustments as a consequence of recording a profit in the periods.

Tanzania Gas

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 (Lindi Region).

The plant supplies natural gas to a 25 km 12″ offshore pipeline and a 207 km 16″ onshore pipeline and is used by the power sector and industrial markets in the Dar es Salaam area.

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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.

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