Dar es Salaam. Australia’s Bounty Oil and Gas has said that it expects commercial gas production from the Kiliwani North Gas Project in Mtwara to begin early next year at an initial rate of 20 million cubic feet per day.
The Sydney-based company has a 10 per cent stake in the project that is located near the Songo Songo island gas project, which is operated by Aminex PLC.
The Tanzanian Petroleum Development Corporation has financed and is constructing the main 36 inch south-north pipeline system, the Songo-Songo 24 inch lateral and the Songo-Songo Gas Processing Plant.
“This will allow the joint venture to sell its production at the wellhead, eliminating all capital expenditure exposure to infrastructure and greatly simplifying the process of selling sales gas,” said in a statement on Friday.
Kiliwani North
Kiliwani North is located within the Nyuni Block that is located 30 kilometres offshore from Rufiji Delta Tanzania. The Kiliwani North-1 had flowed 40 million cubic feet of gas during testing.
The Nyuni joint venture is currently negotiating with contractors to acquire 700 square kilometres of new 3D seismic over the deep water in the eastern part of the production sharing agreement.
“This will detail the up dip extension of Lead 3 in the adjacent Ophir/RakGas East Pande permit which independent consultants recently suggested could contain 1.3 trillion cubic feet of gas within the Nyuni PSA area.”
Tanzania has made big natural gas discoveries off its southern coast and hopes to use its deposits to end chronic energy shortages and modernize the national economy. As of April, the government said the country’s natural gas discoveries stood at 46.7 trillion cubic feet.
The Citizen
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