TANZANIAN PRESIDENT JAKAYA Kikwete has endorsed a domestic gas to wire project as alternative commercialization options for monetizing the natural gas resource of Mnazi Bay Concession. He has also endorsed a marine compressed natural gas export project, aiming to use the same feed stock. A joint analysis of Pre-Feasibility study, undertaken for the proposed 300 MW power generation and transmission
interconnection project, collectively termed the VLPP, was presented to the president by management of Artumas, operator of the Mnazi Bay and officials of the relevant Tanzanian government in January 2008. The study recommended the VLPP and marine CNG export projects as the priority developments for natural gas utilization. Mr Kikwete advised ‘Artumas to move forward with both initiatives, targeting 2010 for start up
of commercial operations. Phase 2 analysis is underway, further examining capital and operating costs for the generation assets, assessing the economics and routing challenges for the Mtwara-Dar es Salaam transmission interconnection, and examining the environmental aspects of the overall development through an Environmental Impact Scoping Assessment. The Phase 2 Pre-Feasibility results were targeted for end-February 2008, and expected to be input to final decision regarding project sanction and financing. The VLPP has been incorporated within the TANESCO Tanzania Electricity Master Plan update, which is to be released in first-half 2008. Artumas is maintaining its focus on the marine compressed natural gas (CNG) export project, moving natural gas from Mtwara to Mombasa. Ongoing monitoring and geopolitical assessment of the political turmoil in Kenya suggests that the recent unrest should not impact the timing of the CNG export development, according to the release.