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    Tanzanian CCGT Ups Mnazi Gas Supply

Summary

Pertamina's junior partner in the small southern Tanzanian gasfield of Mnazi Bay, Wentworth, says that gas demand is picking up in the wake of a new power plant's commissioning.

by: Mark Smedley

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Tanzanian CCGT Ups Mnazi Gas Supply

Pertamina-owned French firm Maurel & Prom's junior partner in the small southern Tanzanian gasfield of Mnazi Bay says demand is picking up in the wake of a new power plant's commissioning.

Oslo and AIM-listed Wentworth's CEO Bob McBean said January 11 that higher gas production there would enable the firm to “continue to strengthen its balance sheet.”

Commissioning of the Kinyerezi-2 gas-fired plant had advanced since its update three weeks ago, added Wentworth, with the first two of its six turbines now operational.  That, combined with existing demand from the Kinyerezi-1 and Ubungo II power plants – all near the capital Dar-es-Salaam – plus industrial demand growth, culminated in an end-of-2017 daily production of 73.4mn ft3/d (at 100% equity), the highest production from the Mnazi Bay field last year.

Mnazi Bay licensees are operator Maurel & Prom 48.06% – since earlier this year owned by Pertamina – Wentworth 31.94% and state-owned Tanzania Petroleum Development Corporation (TPDC) 20%.

Full year 2017 production (at 100%) at Mnazi Bay averaged 49.1mn ft3/d, while 4Q alone averaged 62.2mn ft3/d. It now forecasts a full year 2018 average of 65mn to 75mn ft3/d (also at 100%), based on demand from the remaining four gas-fired turbines due onstream, plus demand from the Dangote cement factory when it starts using natural gas. 

Last month Wentworth reported much prompter payment by its customers. In November 2017 it had said payments were still four and five months in arrears from Tanesco, its main purchaser.

Just to the south, over the border into onshore Mozambique, Wentworth also said procurement was progressing for the drilling of an appraisal well near its Tembo-1 gas discovery as well as a process to farm out equity; it expects to drill that well in 3Q 2018, subject to securing a partner.