Dismiss Notice
You are browsing this site as a guest. It takes 2 minutes to CREATE AN ACCOUNT and less than 1 minute to LOGIN

Orca forms unit to build E.Africa gas network

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by Geza Ulole, Jul 14, 2010.

  1. G

    Geza Ulole JF-Expert Member

    Jul 14, 2010
    Joined: Oct 31, 2009
    Messages: 7,723
    Likes Received: 1,025
    Trophy Points: 280
    Print | Close this window
    Orca forms unit to build E.Africa gas network

    Wed Jul 14, 2010 3:33pm GMT
    * To expand gas pipeline in east Africa
    * Orca seeking partners for expansion

    By Fumbuka Ng'wanakilala
    DAR ES SALAAM, July 14 (Reuters) - Toronto-listed Orca Exploration (ORCb.V) has created a new infrastructure unit to help it build a natural gas pipeline network in east Africa.
    Called EastCoast Transmission and Marketing, the division will first focus on expanding the onshore pipeline carrying gas from Songo Songo off Tanzania's east coast to the commercial capital Dar es Salaam, Orca said in a statement late on Tuesday.
    "Ultimately it is envisioned that the pipeline could be extended along the coast - north to Mombasa and south to Mtwara near the border with Mozambique near the Mnazi Bay gas discovery," the company said.
    Orca said in April it planned to raise daily natural gas production at the Songo Songo field -- with 490.2 billion cubic feet of proven and probable gas deposits -- by 60 percent by the end of 2012 to 144 million cubic feet. [ID:nLDE63L1I5]
    The Mnazi Bay gas deposit lies on a block held by Oslo-listed Artumas Group Inc (AGIC.OL). Artumas estimates the gas potential at 3 trillion cubic feet.
    At present natural gas from Mnazi Bay is used to generate about 12 MW of power, which is distributed in Mtwara.
    Artumas Tanzania has put on hold plans for a 300 MW power plant due to the global economic crisis, which made it harder to access financing.
    "The markets for natural gas are opening up in East Africa and there is significant potential demand from the power sector. However infrastructure remains a bottleneck that urgently needs to be addressed," said David Lyons, Orca's chairman and CEO in the statement.
    Orca said it was discussing with potential pipeline expansion partners and was keen to have a significant East Africa finance component as part of the infrastructure project.
    It added that cash flow from its operations in Tanzania and anticipated funding from the company's recently announced rights issue will also help finance the infrastructure project.
    Demand for power is rising in east Africa's second largest economy and Tanzania is expected to save billions of dollars over the next 20 years using natural gas instead of oil imports.
    Orca operates the Tanzanian project via its wholly-owned subsidiary PanAfrican Energy and in cooperation with power company Songas, a consortium including state-run Tanzania Petroleum Development Corporation and Bermuda-based Globeleq.
    It supplies the gas to 35 industrial customers and for power generation for the national grid by Songas and state-run Tanzania Electric Supply Company.
    The east African economy has proven natural gas deposits of about 3.3 trillion cubic feet and is trying to use it to blunt the effects of high international fuel prices. (Editing by George Obulutsa and James Jukwey) (Email:nairobi.newsroom@reuters.com; Tel +254 20 2224 717)) (For more Reuters Africa coverage and to have your say on the top issues, visit: af.reuters.com/)
    © Thomson Reuters 2010. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.
    Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.

    Orca forms unit to build E.Africa gas network | News by Country | Reuters

  2. Abdulhalim

    Abdulhalim JF-Expert Member

    Jul 15, 2010
    Joined: Jul 20, 2007
    Messages: 16,463
    Likes Received: 15
    Trophy Points: 135
    It seems like ze mzunguz wamesha-secure hizo hifadhi zetu za nishati, sisi tutaishia kuuziwakwa bei watakayoamua wao na kubaki mimacho kodo! inashangaza pia wamezuia mradi wa kuzalisha hizo 300MW, it is funny how dear our country needs this input in our national grid ili walau kuongeza reliability kwene utoaji huduma na kupunguza utegemezi wa vyanzo vya maji, Hii ingeongeza uzalishaji kwa watu wa kati na chini kwene mishemishe zao.

    Haidhuru sikutegemea kipya maana taifa lipo njia panda, halina dira wala muelekeo.