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Testing of Tanzania’s Natural Gas Pipeline is Major Value Catalyst
I was interested to learn of news coming in
from Tanzania that the Mtwara to Dar es Salaam natural gas pipeline is nearly
complete and that gas could start flowing as early as January 2015, please see
article by IPP Media.
This is a very important piece of news for
London listed Solo Oil (LSE:SOLO) and its partner in Tanzania AMINEX (LSE:AEX)
as the pipeline passes just 20 kilometres from the Ntorya-1 gas condensate
discovery, part of the Ruvuma Basin PSA where Solo has a 25% stake. A resource
report prepared by ISIS Petroleum Consultants attributes 5.75 tcf of potential
gas-in-place resources to the Ruvuma PSA. ISIS calculates that Ntorya holds
mean 1.17 tcf of un-risked gas in place of which 178 bcf are considered
discovered.
According to reports, live testing of the
pipeline will take place in January 2015, when natural gas is set to start
flowing. The Tanzania government officially inaugurated the construction of the
Mnazi Bay to Dar es Salaam Gas Pipeline project, on September 5th, 2012.
Back in May this year Solo announced 2D
seismic acquisition to appraise up-dip portion of the Ntorya-1 discovery were
complete and processing had begun. Fully interpreted results are expected
anytime soon and if positive, could pave the way for Ntorya to rapidly advance
towards production.
Typically a gas condensate well can be
brought into production within two years if pipeline infrastructure is in
place. For Solo and AMINEX, it would be a question of constructing a 20
kilometre pipeline spur from Ntorya to feed into the main pipeline, a process
made much easier now the main pipeline construction is on track for completion.
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