Wentworth Resources and its JV partner on the Mnazi Bay license in Tanzania, Maurel et Prom, reported that gas deliveries to the new transnational pipeline had commenced. The gas production facilities at Madimba, the Mtwara to Dar es Salaam pipeline and the Kinyerezi Gas Receiving Facility have now been fully commissioned and are operational. Gas from the Mnazi Bay field is currently being used to generate power in Dar es Salaam at the existing Ubungo-II and Symbion power plants, as well as at the new Kinyerezi-I power plant.
Production volumes into the pipeline are currently at 33 Mmscf/d from three wells on a restricted flow basis, and are expected to reach 80 Mmscf/d once all of the generators at these three power plants are fully operational, which is expected in Q4 2015.
Three of the five existing gas wells at Mnazi Bay have been successfully brought on-stream with well performance in line with expectations. The fourth well is expected to be tied in during the month of November 2015 and the fifth well is expected to be tied in and ready to produce into the new pipeline in Q1 2016.
Sales gas volumes of 1,032 Mmscf were delivered to the new pipeline during October 2015 (an average of 33 Mmscf/d) and a gross payment of $3.8 million to the Mnazi Bay Joint Venture Partners has been received from the buyer of the gas, TPDC.
Under the GSA signed in September, the sale price has been set at $3.00 per million BTU, approximately $3.07 per thousand cubic feet, rising in line with the US CPI industrial index commencing in 2016.