Globaleq’s Role In Tanzanian Gas Project

Globeleq, the Bermuda-registered emerging markets power company, is a partner in PanAfrican Energy’s plans to invest $130 million to double natural gas output following a surge in demand in east Africa’s second-largest economy.

Toronto-listed Orca Exploration’s Tanzanian unit, PanAfrican Energy said it aims to drill two new wells and expand production at a third existing well to tap demand for gas for power generation and industrial use.

“PanAfrican Energy … expects to increase its gas production capacity from 113 million standard cubic feet per day to over 250 million standard cubic feet per day in the coming months,” the company said in a statement on Sunday [Nov. 6].

The company’s general manager, Andrew Brown, said the energy firm would spend $130 million to boost output at its main Songo Songo gas field in southern Tanzania, with the drilling of two new wells and the expansion of an existing third well.

“With demand for gas having increased since production began in 2004, PanAfrican Energy will be raising production capacity of gas in line with Tanzania’s energy infrastructure drive, and is helping plan for all areas of potential expansion with the industry and the economy as a whole,” said Mr. Brown.

Drilling of the first of the new wells is expected to begin in late November or early December, said the company.

Orca operates the Tanzanian project via its wholly owned subsidiary PanAfrican Energy and in cooperation with power company Songas, a consortium including state-run Tanzania Petroleum Development Corporation and Bermuda-based Globeleq.

It supplies gas to 35 industrial customers and for power generation for the national grid by Songas and state-run Tanzania Electric Supply Company.

Tanzania’s natural gas reserves are seen at more than 10 trillion cubic feet from a previous estimate of 7.5 tcf following major gas discoveries offshore.

The Tanzanian government has shifted its focus to thermal-powered power projects to wean itself off rain-dependent hydropower stations.

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