The East African: Tanzania's NSSF steps in to rescue $1.2b gas pipeline project
Tanzania’s National Social Security Fund has approached Canada’s Orca Exploration Group to acquire a majority shareholding in its subsidiary Pan African Energy (Tanzania) Ltd, deepening the fund’s exposure in the energy sector.
The entry of NSSF into Pan Africa Energy will help the company raise $300 million in counterpart funds needed to start a $1.2 billion gas pipeline that is being financed by the Export Import (Exim) Bank of China.
“Following my meeting with Mwinsheshe Saidi, your CFO in Tanzania, I write to express NSSF’s interest in acquiring Orca’s assets in Tanzania,” says NSSF’s chief executive Ramadhan Dau, in a letter dated June 18, to Pan Africa Energy Group CFO Robert Wynne.
Orca owns a licence for two blocks near Songo Songo island through PAE, which in turn operates a gas processing facility on the island on behalf of Songas Ltd.
The blocks contain the Songo Songo gas field, which feeds the processing facility that is linked to Dar es Salaam via a 207km pipeline.