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Tanzania: Irish Firm to Boost Energy Production in Nation

Discussion in 'Jukwaa la Siasa' started by nngu007, Mar 21, 2011.

  1. nngu007

    nngu007 JF-Expert Member

    Mar 21, 2011
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    21 March 2011

    Nairobi — The Northern Ireland-based construction and civil engineering company Castletown Enterprises has expressed interest in constructing a new pipeline to transport natural gas from the Songo Songo gas field to Dar es Salaam.

    The project is intended to add 200 megawatts (MW) of electricity to the national grid.

    Charlie Mc Cauley, chief executive officer of Castletown Enterprises, told The EastAfrican in Dar es Salaam the firm also plans to build and operate a 200-MW open cycle gas-fired power plant that could be expanded to 500 MW in the future.
    This comes as good news to Tanzania which has been grappling with power shortages.
    William Ngeleja, minister for Energy and Minerals, said last week that the government has already replied to Castletown Enterprises Limited and invited the firm to open negotiations with the Tanzania Petroleum Development Corporation and TANESCO.
    Mr McCauley said Castletown Enterprises has approached the government and hopes to enter into a memorandum of understanding (MoU) to formalise the relationship and enable the firm to begin the required tasks.

    If the deal is approved, the pipeline would be the second to carry natural gas from the Songo Songo field 200 kilometres south of Dar es Salaam to the Ubungo power plant in the commercial capital. Songas Ltd owns and operates the first pipeline network which was completed in 2004.
    According to Mr. Ngeleja, it took least a year to lay the existing gas pipeline "and the one to be laid by Castletown would take a much shorter period because they won't necessarily have to start creating a new leeway, as the current one is 60 metres wide, which is big enough to accommodate another pipeline."

    The Northern Irish company located in Limvady near Belfast is to discuss the best possible location for the new power plant with TANESCO officials, he said.
    "The two will have to sit and decide where to put the plant because TANESCO, being the country's electricity supplier, will play a big role in making sure the project comes on board in the shortest possible period," he added.
    "It is in their interest as well that the generation of the 200MW gets into the national grid sooner than later given the crisis that we have been going through."
    The government said the new pipeline is expected to be bigger than the current one, which has a diameter of 16 mm.
    The one Castletown wants to construct would be at least 24 mm in diameter.
    According to the Tanzania Petroleum Development Corporation (TPDC), a second pipeline is needed because the existing one cannot accommodate any more users unless capacity at the supply side is increased.
    Songas has already applied to the Energy and Water Utilities Regulatory Authority (EWURA) for a tariff adjustment so that it can begin increasing the output of natural gas from Songo Songo.
    Tanzania has gas reserves at Songo Songo, Mnazi Bay and Mkuranga.
    Gas from Songo Songo and Mnazi Bay is used to generate power and some is supplied to industries in Dar es Salaam, while a lesser amount is converted into compressed natural gas (CNG) to power motor vehicles