The company is currently in discussion with potential pipeline expansion partners and is keen to have a East Africa finance component as part of the infrastructure project, the company said.
EastCoast Transmission will first focus on expanding the onshore natural gas pipeline system transporting Songo Songo gas to Dar es Salaam. This will require the twinning of the existing 207km pipeline from Somanga Funga, where the marine pipeline from the Songo Songo gas field connects to the mainland, to the pipeline’s current terminus at Dar es Salaam.
Orca has undertaken some preliminary engineering studies for this section. Ultimately it is envisioned that the pipeline could be extended along the coast – north to Mombasa and south to Mtwara near the border with Mozambique near the Mnazi Bay gas discovery, the company added.
Currently, the installed infrastructure configuration that transports the Songo Songo gas to Dar es Salaam is at capacity at 90mmcfd. To address capacity constraints, the pipeline owner, Songas, is planning to expand the existing system and increase the throughput to a peak of 140mmcfd by January 2013. The infrastructure expansion that Orca’s new division is planning would be required shortly afterwards.
Orca’s expanding cash flows from its operations in Tanzania and anticipated funding from the company’s recently announced rights issue will help to finance the infrastructure project.
