Pipeline development a key focus in Tanzania

Orca Exploration Group has established a division, East Coast Transmission and Marketing, to focus on the development of a 600 km pipeline which would carry natural gas from the Songo Songo Island and Mnazi Bay gas fields in southern Tanzania toward the country's border with Mozambique.The proposed pipeline would transport gas from the Songo Songo Island gas fields to Dar es Salaam via looping an existing 207 km pipeline. From Dar esSalaam the pipeline would be extended along the coast – north to Mombasa, Kenya and south to Mtwara near Tanzania’s border with Mozambique and the Mnazi Bay gas discovery

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Orca Exploration Chairman and Chief Executive Officer David Lyons said “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.

“We are looking forward to working with partners to increase throughput and extend the pipeline network to reach new markets. This will benefit not just Orca but also others who can then develop their gas discoveries in Tanzania.”

Orca has said that there has been significant interest in recent months from the larger energy companies in drilling offshore Tanzania, in addition to Orca’s plans to drill its Songo Songo West prospect in 2011.

The company said that it is currently in discussion with potential pipeline expansion partners.

Meanwhile, a regional intergovernmental organisation, East African Community (EAC), has commenced route survey on a similar pipeline, which it proposes will run from Dar es Salaam to Tanga, Tanzania, and Mombasa, Kenya.

The commencement of the route survey follows the submission of an Inception Report from Denmark consultancy company COWI A/S. The company submitted the report in association with COWI Tanzania and Runji & Partners of Kenya, after which a workshop meeting was held to review the report as part of the pipeline feasibility study. Held in August, the workshop was attended by members of the feasibility study steering committee from the five EAC partner states, the EAC Secretariat and COWI.

The steering committee analysed the detailed work programme and methodology presented by the consultant and made suggestions for improvements. A revised report is to be submitted to the committee based on these suggestions.

The feasibility study for the proposed pipeline began in July, and is expected to take eight months to complete. The scope of work to be undertaken as part of the study includes:

• Determining the route of the pipeline;
• Technical feasibility of the project;
• Economic and financial evaluation; and,
• Environmental and social impact assessment and mitigation measures.

A second workshop bringing together key stakeholders in the oil and gas sector and people affected by the project is scheduled to take place in November to review the Interim Report and pipeline route. A final workshop where the findings of the study will be presented is scheduled for end of January 2011.