Gas pipeline test runs moved to next month
GASCO General Manager, Eng Kapuulya Musomba
Gas Supply Company (GASCO), a Tanzania Petroleum Development
Corporation (TPDC) subsidiary, has said 97 per cent of the work is
complete but the rescheduling is unavoidable owing to “minor
construction setbacks”.
GASCO General Manager, Eng Kapuulya Musomba told the Guardian
yesterday that construction of valve and gas receiving stations at
Somanga in Lindi and Kinyerezi in Dar es Salaam Region have not been
completed and hence the stalled test.
“Testing of the gas pipe has also been stalled by delayed
installation of some equipment facilities and we are also waiting for
the pipeline to dry,” he said but maintained that; “We are on the right
track…we hope to complete everything by June this year.”
Nonetheless, other few remaining works include construction of
treated waste water discharge pipeline, a gas gathering station and
laying of pipes from Madimba to Mnazi Bay gas field.
Others are coating repair, trenching as well as installation of
de-hydration and de-hydrocarbon units and erection of a condensate
storage tank.
TPDC published a report in December 2014 citing that 80 per cent of
the project loan (issued by Exim Bank of China) had been spent.
The project entails construction of the 532 kilometres long gas
pipeline from Mtwara to Dar es Salaam and a gas purification system at
Mnazi Bay and Songosongo.
The total cost for the project is perched at USD 1,225,327,000, of
which 95 per cent (USD 1,164, 106, 250) is a loan from the Exim Bank of
China while the government contributes 5 per cent.
TPDC Board Chairperson, Michael Mwanda was recently quoted saying
that completion of the project will save the government more than USD 1
billion per annum, equivalent to 1.6trn/-.
He said the pipeline will have the capacity to transfer at least
784 million cubic feet of gas per day but if compressed it can transfer
up to 1,002 million cubic feet daily.
The gas is projected to generate at least 300 megawatt which will be pumped into the national grid.
In 2012 the government through the Ministry of Energy and Minerals
signed an agreement for the financing of the project at a cost of USD
1.225bn.
Compared to the 12-16 inch pipe owned by Songas currently, the
pipeline under construction is 24-30 inches in size and substantially
increase the volume of gas transported which is estimated to be 420
standard cubic feet of gas a day capable of generating over 2,000
megawatts (MW) of electricity.
The pipeline project is expected to reduce the cost of producing
thermal electricity from the current USD 0.34 cents to USD 0.12 cents
per megawatt.
SOURCE:
THE GUARDIAN
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