Tanzania starts construction work on natural gas pipeline

Tanzania has begun construction work of a 532km natural gas pipeline between Mnazi Bay in Mtwara and Dar es Salaam.

The Mnazi Bay to Dar es Salaam Gas pipeline project will allow Wentworth Resources, the Mnazi Bay concession partners, to transport natural gas to large-scale electricity producers, industrial users and major population centres.

The project entails construction of a new 24in to 36in pipeline between Mnazi Bay and Somanga, and expansion of the current pipeline between Somanga and Dar es Salaam.

It will be jointly undertaken by the China Petroleum and Technology Development Company, a unit of China National Petroleum Corp and state-run Tanzania Petroleum Development Corporation (TPDC).

In June, TPDC entered into a $1.2bn loan agreement with Chinese government-owned Export-Import Bank for the pipeline project.

Wentworth Resources executive chairman Bob McBean said, "This is the beginning of Tanzania’s future as a significant gas producing country and we are proud to be a partner in this endeavour."

The company said selling gas through this coastal, transnational pipeline will be a significant event in its history, since the discovery of the Mnazi Bay gas field in 1982 that has been effectively stranded.

Upon completion in 12 to 14 months, the pipeline is expected to handle 210 million cubic feet of gas per day, double the current capacity.

Gaining access to the greater markets of Tanzania is expected to allow full production from Wentworth’s existing and future gas wells.

Currently, three of four existing wells are being worked on to increase long-term productivity.