PANAFRICAN Energy Tanzania (PAET) has increased natural gas production ahead of demand to cushion recent raising industrial appetite.
PAET’s Managing Director, Andy Hanna said yesterday through a press release that they have upped their average daily sales by 62 per cent to 60 million standard cubic feet per day (mmscfd) eight months to August from 37mmscfd similar period last year—the highest 15-years.
“PAET is poised to meet early increases in demand for gas to feed new generation facilities and is ready to work with our partners towards meeting long term demand in the future,” Mr Hanna said.
PAET, a subsidiary of Orca Exploration, said on top of this, they expect further increases in sales following an agreement with the Tanzania Petroleum Development Corporation (TPDC) signed last month to increase the maximum daily quantity of Additional Gas that can be supplied.
Under the company’s Gas Sales Agreement with TPDC the supply expects to increase to 30mmscfd from current 20mmcfd.
However, Mr Hanna said that the production increases to meet such demand would require PAET to develop the northern section of the Songo Songo field where there was a natural gas discovery in 1974.
In addition, the company is in discussions with commercial fuel distributors and other potential consumers to expand its existing compressed natural gas business.
“These are exciting times for Tanzania which is seeing a marked increase in its power generation capacity, alongside industrial growth,” Mr Hanna said.
Recognising the government’s efforts to ensure maximum benefit to the nation from its rich natural resources, PAET was examining ways to ensure they are in a position to support the rapidly expanding and varied markets for natural gas in the country.
“As a company we are motivated by this increased activity and, in conjunction with our partner, TPDC, are evaluating the options to increase production from the Songo Songo field to ensure we can support the government’s objectives in a timely manner,” Mr Hanna said.