Gas pipeline test runs moved to next month

Tuesday, 10 February 2015

Gas pipeline test runs moved to next month

GASCO General Manager, Eng Kapuulya Musomba
Test runs on the Mtwara-Dar es Salaam natural gas pipeline, earlier scheduled to start last month, have been postponed to next month.
 
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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