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Thursday, June 23, 2016
Natural gas production volumes have ramped up in Tanzania according to Wentworth Resources, one of the partners on the field, since the Mnazi Bay field went into production. Wentworth said that gas deliveries from Mnazi Bay continue to the new transnational pipeline and are ultimately used in power generation facilities near Dar es Salaam.
Production volumes from the Mnazi Bay gas field peaked at 74 Mmscf/d during Q2. However, volumes were curtailed for a period of time during April 2016 due to heavy rains when some natural gas power generation was displaced by hydro generated power. They also slowed due to the Symbion power plant being shut in due to a dispute.
Sales volumes to the pipeline have been maintained at 50 Mmscf/d since June due to a dispute between Symbion, one of the power plants which utilizes Mnazi Bay gas which has temporarily ceased operations, and TANESCO. It is unclear how long it will be before the dispute is resolved and power generation at the Symbion power plant resumes and, until such time, volumes are expected to remain at this level.
The company still anticipates that daily production volumes of 70 – 80 Mmscf/d will be achieved in 2016, once this dispute has been resolved and power demand stabilizes.
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