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    Aminex signs gas sales agreement for Ntorya field in Tanzania


Ntorya gas condensate field located in south-east Tanzania and forms part of the Ruvuma PSA.

by: Shardul Sharma

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Natural Gas & LNG News, Africa, Security of Supply, Corporate, News By Country, Tanzania

Aminex signs gas sales agreement for Ntorya field in Tanzania

Aminex, a Tanzania-focused company, has signed an agreement to sell gas from the Ntorya location, it announced on January 10.

The gas sales agreement (GSA) for the Ntorya gas field was signed by the company's subsidiary, Ndovu Resources, along with the operator, ARA Petroleum Tanzania, and the Tanzania Petroleum Development Corporation (TPDC).

The GSA will continue until the earlier of the expiry or termination of the Ruvuma PSA or development licence or the cessation of economic production from the Ntorya gas field. The daily contract quantity (DCQ) for the first contract year is 40mn ft3/day.

The DCQ for subsequent years may be increased upon the agreement of the parties. The maximum daily quantity (MDQ) to be sold under the GSA will be 120% of the DCQ, 48mn ft3/day for the first contract year. The Tanzanian authorities have indicated their willingness to take more gas as production from the field increases and their ability to take such gas increases, with production of 140mn ft3/day anticipated within a few years of the first gas, the company stated. 

“The signing of the GSA with the TPDC marks a significant milestone for the company and the development of the Ntorya field. We thank APT, as operator, and the Tanzanian authorities for their efforts in bringing the execution of the GSA to a close,” said Charles Santos, executive chairman of Aminex.

Aminex now anticipates the early issuance of the development license, allowing the award of a rig contract and enabling the drilling of Chikumbi-1 and the workover of Ntorya-1. The testing of Ntorya-2 is scheduled for mid-year using an in-country mobile test unit.

Despite completing an environmental impact assessment on the proposed pipeline to the Madimba gas plant and paying all compensation to relevant landowners, there has been a delay in the construction of the pipeline. The Tanzanian authorities now expect the pipeline to be completed by the end of 2024, the company said. APT is working closely with the TPDC to expedite construction as soon as possible.

Ntorya gas condensate field is located in southeast Tanzania and forms part of the Ruvuma PSA.