The Energy and Water Utilities Regulatory Authority (Ewura) has set $2.14 as the interim fee for the Tanzania Petroleum Development Corporation (TPDC) for handling one million metric British thermal units of natural gas.
The gas delivered to Dar es Salaam by TPDC will be used by power generation firms, industries, compressed natural gas vehicles, households and institutions.
TPDC is finalising construction of two processing plants at Madimba in Mtwara and Songo Songo island in Lindi. A 36-inch gas pipeline from Mtwara through Somanga Fungu to Dar es Salaam will be commissioned soon.
The Madimba plant has two trains (processing units) each with a capacity of 70 million standard cubic feet per day of gas while the Songo Songo one has two trains of 70 million standard cubic feet per day.
Ewura director-general Felix Ngamlagosi said the authority has fixed the gas processing tariff at $0.95 and transportation tariff of $1.19 per million metric British thermal units to be levied by TPDC as interim fee with effect from April 1, for a period of 90 days.
The new Mtwara-Dar es Salaam pipeline, covering 517km, will begin commercial operations in the second quarter of this year although it was initially planned to start working in January.
READ: Pipeline ready to transport gas to Dar, say officials
TPDC is expected to distribute 435 million standard cubic feet per day to generate 2,175MW of electricity in the next three years.
TPDC has projected that the target power generators, industries, compressed natural gas vehicles, households and institutions will use 181 million standard cubic feet per day this year; 306 in 2016; 470 in 2017 and 475 in 2018.
The $1.2 billion Mtwara-Dar es Salaam pipeline was launched in July 2012, with a loan from Export-Import Bank of China for 95 per cent of the cost and the remaining balance as TPDC’s equity. TPDC incurred capital costs of $213.2 million.
China Petroleum and Technology Development Company won the contract to build the pipeline.
The East African
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