Tumain
JF-Expert Member
- Jun 28, 2009
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Kenya will be the first destination for Tanzania's natural gas exports.
The Artumas Group Incorporation, a Mtwara-based gas exploring company, has been given the go ahead by the government to export to Kenya.
According to a statement from Artumas, the Tanzania government has given approval to the firm to finalise negotiations with the relevant parties for the export of compressed natural gas to off-take clients in Mombasa, Kenya.
It further said that the approval allows Artumas to move forward to conclude the relevant Project Agreements, including long term gas sales agreements with the off-take customers and transportation services agreements with the compressed natural gas shipper.
In the statement, Mr Mason said that conclusion of these commercial agreements would underpin the current planning activity in support of commencements of the drilling programme in the fourth quarter of 2008.
He said: "During the past year, Artumas has worked in close co-operation and collaboration with its working interest partner, Tanzania Petroleum Development Corporation and the government of Tanzania to determine the optimal use of the large gas resource base located in the Tanzania part of the Ruvuma Basin.
The gas exploration at Mnazi Bay became the second facility to produce electricity from locally-sourced gas. The first was gas from Songo Songo Island, which is transported to Dar es Salaam via a pipeline to Ubungo Power Plant from where Songas generates power for sale to Tanesco.
Tanzania has also discovered further gas deposits at Mkuranga, slightly over 40km from Dar es Salaam.
Source: East Africa (kenya)